ANNUAL SURVEY OF THE FRENCH VIDEO GAME INDUSTRY SECOND EDITION A SNJV - IDATE COLLABORATION 2015 Sommaire INDUSTRY CONTEXT 8 METHODOLOGICAL NOTE (2015 ANNUAL SURVEY) 10 1. THE ECONOMIC STRUCTURE AND PRODUCTION OF VIDEO GAMES IN FRANCE 12 1.1. A network of young companies, driven by creation 1.2. France, home to video entertainment production 1.3. Production models strongly impacted by dematerialisation 12 15 22 2. EMPLOYMENT IN THE FRENCH VIDEO GAME INDUSTRY 28 2.1. Great disparity in company size and number of jobs 2.2. Long-term and skilled jobs 2.3. Encouraging future prospects for employment in 2016 28 31 32 3. THE ECONOMIC AND FINANCIAL SITUATION OF FRENCH VIDEO GAME COMPANIES 34 3.1. Companies growing despite economic fragility 3.2. The critical question of financing business development 34 38 4. OUTLOOK: REASONS TO BE OPTIMISTIC 40 4.1. Entrepreneurs find increased optimism within a context of short-term financial visibility 4.2. France becoming more attractive in a competitive and globalised market 40 42 5.CONCLUSION 44 6. ABOUT THE SNJV 46 7. ABOUT IDATE 47 8. TABLE OF CONTENTS 48 3 Tables Table 1 : Main business activity of companies surveyed12 Table 2 : Age of development studios surveyed Table 3 : Service provision as a business activity among development studios 13 Table 4 : Service provision based on studio age Table 5 : Average share of service provision in turnover, by revenue bracket 14 Table 6 : Share of service provision in turnover, based on studio age 14 Table 7 : The various types of specialised services provided by studios 14 Table 8 : Average FTE jobs based on company age 15 Table 9 : Breakdown of companies surveyed by date founded15 13 14 Table 10 : Independent development studios 15 Table 11 : Types of games developed by studios surveyed 16 2015 (development studios) 22 Table 27 : Business models adopted in 2014 and 2015 (development studios) 22 Table 28 : Average share of each of these business models in video game catalogues in 2014 and 2015 (development studios) 23 Table 29 : Average annual production budgets per company (all companies) 23 Table 30 : Average annual production budgets per studio (development studios) 23 Table 31 : Average annual production budgets (development studios with a turnover less than 10M EUR) 24 Table 32 : Average annual production budgets per game and per platform (development studios with a turnover less than 10M EUR) 24 Table 33 : Proportion of production budget dedicated to promoting games (development studios) 25 Table 12 : Genres of games developed by studios surveyed16 Table 34 : Proportion of production budget dedicated to promoting games (development studios with a turnover less than 10M EUR) 25 Table 13 : Publishing/distribution platforms (publishers/distributors)16 Table 35 : Proportion of production budget dedicated to promoting games based on studio age 25 Table 14 : Breakdown of catalogues by platform (publishers/distributors)17 Table 36 : Budget allocated for promoting games based on studio age 26 Table 15 : Development platforms prioritised by studios 17 Table 37 : Types of funding used to finance productions (development studios) 26 Table 16 : New projects released in 2015 (development studios) 18 Table 38 : Breakdown of types of financing used in production budgets (development studios) 27 Table 39 : Financing based on studio age 27 Table 17 : New projects released in 2015 (publishers/distributors)18 Table 18: Digital distribution strategy for handheld consoles (development studios) 19 Table 19 : Digital distribution strategy for home consoles (development studios) 19 Table 20 : Digital distribution strategy for mobile phones and smartphones (development studios) 19 Table 40 : Average FTE jobs per company in 2014 and 2015 (all companies) 28 Table 41 : Average FTE jobs per company based on age (all companies) 28 Table 42 : Breakdown of FTE jobs in 2015 based on company age (all companies) 28 Table 43 : Collective bargaining agreements 29 Table 21 : Digital distribution strategy for tablets (development studios) 20 Table 22 : Digital distribution strategy for personal computers (development studios) Table 44 : Average number of FTE jobs (publishers and distributors)29 20 Table 45 : Average FTE jobs per company in 2014 and 2015 (development studios) 29 Table 23 : Number of projects developed in 2014 and 2015 (development studios) 21 Table 24 : Proportion of original IPs among projects under development (development studios) 21 Table 25 : Development studios and self-publishing 22 Table 26 : Video game distribution methods in 2014 and Table 46 : Average FTE jobs per company based on age in 2014 and 2015 (development studios) 29 Table 47 : Breakdown of FTE jobs in 2015 based on age (development studios) 30 Table 48 : Average FTE jobs per company (development studios) 30 Tables Table 49 : Average FTE jobs per company based on age (development studios) 30 Table 79: Table 50 : Breakdown of workforce by job category (all companies)31 Table 81 : Confidence levels of those surveyed about the future of their company 40 Table 51 : Breakdown of workforce by type of contract (all companies)31 Table 82 : Opinions on the future of the French video game sector (all companies) 40 Table 52 : Breakdown of workforce by type of contract (development studios) 31 Table 83 : Company situations in the next 12 months 41 Table 84 : Turnover in the next 12 months 41 Table 85 : Financial visibility 41 Table 53 : Workforce change by 2016 (all companies) 32 Table 54 : Jobs created by 2016 32 Table 55 : Job types created by 2016 33 Table 56 : Reasons for payroll growth 33 Table 57 : Average turnover (all companies) 34 Table 58 : Average turnover based on age (all companies) 34 Table 59 : Accounting situation at end of 2014 based on age (all companies) 34 Table 60 : Accounting situation at end of 2013 based on age (all companies) 35 Table 61 : Average turnover growth between 2014 and 2015 (development studios) 35 Table 62 : Average turnover based on age (development studios)35 Table 63 : Financial situation at end of 2013 and 2014 (development studios) 36 Table 64 : Financial situation at end of 2014 based on age (development studios) 36 Table 65 : Financial situation at end of 2013 based on age (development studios) 36 Table 66 : Average turnover (development studios) 36 Table 67 : Capital based on age (all companies) 37 Table 68 : Capital based on age (development studios) 37 Table 69 : Share of exports (development studios) 37 Table 70 : Proportion of budget devoted to international development (all companies) 37 Table 71 : Proportion of budget devoted to international development (development studios) 37 Table 72 : Sources of funding of companies surveyed 38 Table 73 : Access conditions for receiving bank credit 38 Table 74 : Financing needs of companies surveyed 38 Table 75 : Capital raised in 2013 39 Table 76 : Capital raised in 2014 39 Table 77 : Amount of capital raised on average in 2013 39 Table 78 : Amount of capital raised on average in 2014 39 Capital raised in 2015 Table 80 : Uses for raising capital 39 39 Table 86 : The attractiveness of France for the video game sector42 Table 87 : Ranking of the most attractive countries/ regions (open question with ranking) 43 Table 88 : The most attractive countries/regions 43 Figures Figure 1 : Video game companies in France 12 Figure 2 : Main business activity of companies surveyed 13 (development studios) Figure 23 : Video game distribution methods in 2014 and 2015 (development studios) 22 Figure 24 : Business models adopted in 2015 (development studios) 23 14 Figure 25 : Average share of each of these business models in video game catalogues in 2015 (development studios) 23 15 Figure 26 : Average annual production budgets per company (all companies) (in millions of EUR)23 Figure 3 : Age of development studios surveyed in 201513 Figure 4 : Service provision among development studios 13 Figure 5 : Type of service provided by studios Figure 6 : Breakdown of studios surveyed by date founded Figure 7 : Breakdown of companies surveyed by date founded15 Figure 8 : Independent development studios 22 Figure 27 : Average annual production budgets per studio (development studios) (in millions of euros) 24 16 Figure 28 : Average annual production budgets (development studios with a turnover less than 10M EUR) (in millions of EUR) 24 Figure 9 : Publishing/distribution platforms (publishers/ distributors) 17 Figure 10 : Breakdown of catalogues by platform (publishers/distributors)17 Figure 11 : Development platforms prioritised by studios 17 Figure 29 : Average annual production budgets per game and per platform (development studios with a turnover less than 10M EUR) (in millions of EUR) 24 Figure 12 : New projects released in 2015 (development studios) 18 Figure 30 : Proportion of production budget dedicated to promoting games (development studios) 25 Figure 13 : New projects released in 2015 (publishers/distributors)18 Figure 14 : Digital distribution strategy for handheld consoles in 2015 (development studios) Figure 31 : Proportion of production budget dedicated to promoting games (development studios with a turnover less than 10M EUR) 25 19 Figure 32 : Proportion of production budget dedicated to promoting games based on studio age 26 Figure 15 : Digital distribution strategy for home consoles in 2015 (development studios) 19 Figure 33 : Types of funding used to finance productions (development studios) 26 Figure 16 : Digital distribution strategy for mobile phones and smartphones in 2015 (development studios) 19 Figure 17 : Digital distribution strategy for tablets (development studios) 20 Figure 18 : Digital distribution strategy for personal computers (development studios) 20 Figure 19 : Number of projects developed in 2015 (development studios) 21 Figure 34 : Breakdown of types of financing used in production budgets (development studios) 27 Figure 35 : Financing based on studio age 27 Figure 36 : Average FTE jobs per company in 2014 and 2015 (all companies) 28 Figure 37 : Average FTE jobs per company based on age (all companies) 28 Figure 38 : Breakdown of FTE jobs in 2015 based on company age (all companies) Figure 20 : Proportion of original IPs among projects under development in 2015 (development studios) 21 28 Figure 39 : Average FTE jobs in 2014 and 2015 (publishers and distributors) 29 Figure 21 : Development studios and self-publishing in 201522 Figure 40 : Average FTE jobs per company in 2014 and Figure 22 : Video game distribution methods in 2015 6 Annual Survey of the French Video Game Industry - 2015 Figures 2015 (development studios) 29 Figure 41 : Average FTE jobs per company based on age in 2014 and 2015 (development studios)2014 et 201530 38 Figure 63 : Uses for raising capital 39 Figure 64 : Confidence levels of those surveyed about the future of their company 40 Figure 42 : Average FTE jobs per company (development studios) 30 Figure 65 : Confidence levels of those surveyed about the future of their company in 2014 and 2015 40 Figure 43 : Average FTE jobs per company based on age (development studios) 30 Figure 66 : Opinions on the future of the French video game sector (all companies) 40 Figure 44 : Breakdown of workforce by job category (all companies)31 Figure 67 : Opinions on the future of the French video game sector in 2014 and 2015 (all companies) 41 Figure 45 : Breakdown of workforce by type of contract (development studios) 32 Figure 68 : How do you think the situation of your company will change in the next 12 months? 41 Figure 46 : Workforce change by 2016 (all companies) 32 Figure 47 : Workforce change by 2016 (all companies) 32 Figure 48 : Jobs created by 2016 Figure 62 : Breakdown of companies based on their financing needs Figure 69 : How do you think your turnover will change in the next 12 months? 41 32 Figure 70 : Financial visibility in 2015 (all companies) Figure 49 : Comparison between number of jobs created and number of job losses by 2016 33 42 Figure 71 : Financial visibility in 2014 and 2015 (all companies)42 Figure 50 : Job types created by 2016 33 Figure 51 : Reasons for payroll growth 33 Figure 52 : Average turnover (all companies) (in millions of EUR) Figure 72 : The attractiveness of France for the video game sector in 2015 43 34 Figure 53 : Accounting situation at end of 2014 (all companies) Figure 73 : The attractiveness of France for the video game sector in 2014 and 2015 43 34 Figure 54 : Accounting situation at end of 2014 based on age (all companies) 35 Figure 55 : Financial situation at end of 2013 and 2014 (all companies)35 Figure 56 : Turnover growth between 2014 and 2015 (development studios) (in millions of EUR) 35 Figure 57 : Turnover growth between 2014 and 2015 based on age (development studios) (in millions of EUR) 35 Figure 58 : Financial situation at end of 2013 and 2014 (development studios) 36 Figure 59 : Financial situation at end of 2014 based on age (development studios) 36 Figure 60 : Financial situation at end of 2013 (development studios) 36 Figure 61 : Turnover growth (development studios) (in millions of EUR) 37 7 Industry context Since the beginning of the 2000s, the video games sector has witnessed a profound change towards dematerialisation in terms of distribution, games and now production practices. This phenomenon has been accelerating since 2010 with the meteoric success of smartphones and tablets. The effects of this have been far-reaching, with considerable impact on both large and small companies in terms of their organisation, their size, their publishing and commercial partnership strategy, and thus their development. Industry context Dematerialisation, a driver for disintermediation and growth in the video games sector The global video game content market rose in value from 35.3 billion EUR in 2008 to 47.7 billion EUR in 2014, driven by dematerialisation, the emergence of new segments and the continued success of relatively new segments. Dematerialisation has meant an increasing number of consumers can be reached, on any platform equipped with a screen, fixed or mobile, and with increasingly varied content. In 2014, 69% of video game revenues were generated by digital sales and distribution, compared with 22% in 2008. Revenues from dematerialisation have experienced an average annual growth of 26.8% over the period, compared with 9.7% for revenues from physical sales. The video games sector, which is digital by nature, has a long history of digitising distribution and in-game content. Use of dematerialisation now seems to be accelerating and expanding into all segments of the sector. The success of browser games, massively multiplayer games, online gaming on consoles and personal computers, and smartphone gaming (since the end of the 2000s), has meant that 2012 was a defining year when the majority of revenues were generated from the digital side of this economy, switching over from the physical. Breakdown of the video game software market by type of revenue, 2008 and 2014 Breakdown of the video game software market by type of revenue, 2008 and 2014 Since the beginning of the 2000s, the video games sector has witnessed a profound change towards dematerialisation in terms of distribution, games and now production practices. This phenomenon has been accelerating since 2010 with the meteoric success of smartphones and tablets. The effects of this have been far-reaching, with considerable impact on both large and small companies in terms of their organisation, their size, their publishing and commercial partnership strategy, and thus their development. 100% 31% 75% 78% 50% 69% 25% 22% 0% Dematerialisation, a driver for disintermediation and growth in the video games sector 2008 2014 Digital Physical Source: IDATE, Video Games in the Cloud, June 2015 Source: IDATE, Video Games in the Cloud, June 2015 The global video game content market rose in value from 35.3 billion EUR in 2008 to 47.7 billion EUR in 2014, driven by dematerialisation, the emergence of new segments and the continued success of relatively new segments. Dematerialisation has meant an increasing number of consumers can be reached, on any platform equipped with a screen, fixed or mobile, and with increasingly varied content. In 2014, 69% of video game revenues were generated by digital sales and distribution, compared with 22% in 2008. Revenues from dematerialisation have experienced an average annual growth of 26.8% over the period, compared with 9.7% for revenues from physical sales. Role redistribution along the value chain Dematerialisation affects all segments of the video game industry. It has led to disintermediation in the value chain and raises questions over the role of certain stakeholders downstream. It has afforded new power to developers, who now have the opportunity to speak directly to their gaming customers. ‘Online’ has ultimately eroded a silobased industry structure and allowed practices and crossplatform services to emerge that both benefit gamers and boost creativity within the sector. www.idate.org © SNJV/IDATE 2015 1 Industry repositioning and revaluation up the chain On an industry-wide scale, dematerialisation of video game market segments has moved value along the value chain. Value creation is now closer to players with a direct link to their customers. Disintermediation of the sector is moving in this direction. The video games sector, which is digital by nature, has a long history of digitising distribution and in-game content. Use of dematerialisation now seems to be accelerating and expanding into all segments of the sector. The success of browser games, massively multiplayer games, online gaming on consoles and personal computers, and smartphone gaming (since the end of the 2000s), has meant that 2012 was a defining year when the majority of revenues were generated from the digital side of this economy, switching over from the physical. In the PC gaming segment, value creation seems to centre on digital retailers, aggregators and some publishers. In the mobile gaming segment, value creation seems to have moved towards app store owners, and to the console manufacturers themselves in the case of console games. On Smart TVs, anything is still possible between TV channels, the Internet giants and the proponents of a cross-platform ecosystem. Gaming platform operators, the 8 Annual Survey of the French Video Game Industry - 2015 major beneficiaries of these developments, have also had to rethink their revenue sharing models to the benefit of Role redistribution along the value chain game development studios. Dematerialisation affects all segments of the video game industry. It has led to disintermediation in the value chain and raises questions has over the role of allowed certain stakeholders It has afforded new Dematerialisation also the downstream. sector to continue power to developers, who now have the opportunity to speak directly to their gaming customers. 'Online' has ultimately eroded a silo-based industry structure and allowed practices and cross-platform services to generating additional revenue, converting new customers emerge that both benefit gamers and boost creativity within the sector. to new types of game, especially ubiquitous games, which Industry repositioning and revaluation up the chain are playable simultaneously on multiple platforms, both On an industry-wide scale, dematerialisation of video game market segments has moved value along the value chain. Valuemobile. creation is now closer to players with a direct link to their customers. Disintermediation fixed and The impact of dematerialisation Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 The impact of dematerialisation varies depending on the market segment, but disintermediation is a common theme. The PC gaming segment, which is easily accessible for independent (indie) developers, has diversified and opened up to casual and social games while retaining a special place for massively multiplayer or multiplayer games. of the sector is moving in this direction. In the PC gaming segment, value creation seems to centre on digital retailers, aggregators and some publishers. In the mobile gaming segment, value creation seems to have moved towards app store owners, and to the console manufacturers themselves in the case of console games. In this context where dematerialisation is continuing to gain ground on the physical market, the sector will continue its On Smart TVs, anything is still possible between TV channels, the Internet giants and the proponents of a dynamicecosystem. growthGaming in the coming all links cross-platform platform operators,years. the major However, beneficiaries of not these developments, have also had to rethink their revenue sharing models to the benefit of game development studios. in the chain will fully benefit from this growth, such as Dematerialisation has also allowed the sector to continue generating additional revenue, converting new customers to new types of game, especially ubiquitous games, which are playable simultaneously on distributors, who are seeing their share captured by others. multiple platforms, both fixed and mobile. The mobile gaming segment (on smartphones and tablets) has built itself around app stores, and around the viral and rapid nature of these stores. With these devices now almost permanently connected, games are also being viewed as a potentially continuous entertainment experience. This implies a new approach is needed, based more on encouraging users to buy, rather than selling a product. In this context where dematerialisation is continuing to gain ground on the physical market, the sector will continue its dynamic growth in the coming years. However, not all links in the chain will fully benefit from this growth, such as distributors, who are seeing their share captured by others. Revenues earned by the various links in the video game market value chain (million EUR) Revenues earned by the various links in the video game market value chain (million EUR) 30,000 The console gaming segment has evolved and now allows all users to download indie and casual games, but also AAA titles. In addition, many features that use the cloud have emerged. These features may relate to the game, other content, consumption, user account management or access to broadcasting services. In this context, console manufacturers remain the cornerstone of this segment’s economy with their e-stores. 25,000 20,000 15,000 10,000 5,000 0 2008 '09 '10 Developers revenues '11 '12 '13 Publisher revenues '14 '15 '16 Distributor revenues '17 '18 '19 Retailer revenues Source: IDATE, Video Games in the Cloud, June 2015 Source: IDATE, Video Games in the Cloud, June 2015 Finally, on Smart or connected TVs, video games take the form of streamed content, known as cloud gaming or Games on Demand. This young segment, which first emerged around 2010, is strengthening and seems to be garnering interest within the industry. The impact of dematerialisation The impact of dematerialisation varies depending on the market segment, but disintermediation is a common theme. The PC gaming segment, which is easily accessible for independent (indie) developers, has diversified and opened up to casual and social games while retaining a special place for massively multiplayer or multiplayer games. www.idate.org © SNJV/IDATE 2015 2 9 Methodological note (2015 Annual Survey) The survey was conducted between 4 May and 1 July 2015 via a self-administered online questionnaire (CAWI - Computer Assisted Web Interviewing). The questionnaire was sent to directors of SNJV-member companies as well as a selection of companies not represented by the SNJV from the video game sector. The survey was publicised by its sponsors, primarily relayed on the Web. Respondents were selected using a non-probability method based on a priori sampling. Given the small size of the study population, the law of large numbers does not apply. However, the sample is representative of the sector, reflecting its activity (nature and volume), its economic and financial health and its perception of the future. Data was processed using Sphinx survey software. There were 146 respondents, all French video game companies, developers, publishers, distributors, accessory manufacturers, service providers, etc. This sample is a satisfactory sample rate at nearly onethird of the SNJV’s estimated population of approximately 330 companies in France1. By way of comparison, the 2014 annual survey had 110 respondents. When we mention ‘companies’, we are referring to all respondents (development studios, publishers, etc.) and when we mention ‘development studios’, we are referring to companies that produce games. 1 Excluding training institutions, independent workers, traditional distributors and companies whose main activity is providing services. 10 Annual Survey of the French Video Game Industry - 2015 SURVEY PROCESSING 11 1. The economic structure and production of video games in France 1.1.A network of young companies, driven by creation 2. Sector structured around content creation... The composition of the respondents of the 2015 annual survey has evolved since the 2014 edition. More service providers took part in this survey and fewer publishers. But this does not signify structural changes up the value chain in this sector. In addition, as a result of the ‘indie’ trend, there are an increasing number of small development companies, often composed of just a management team. 1. Companies located throughout the territory with 3 dominant regional hubs The distribution of creative companies throughout the national territory is one of France’s chief assets in terms of content creation. Although the Ile de France region now accounts for almost half of the industry’s workforce, we find a lot of production in regions with a history of creative development, such as Languedoc Roussillon, RhôneAlpes Auvergne, Nord Pas-de-Calais and Aquitaine. These flagship regions owe their position to the presence of one or more major industry players (e.g. Ankama in Nord Pasde-Calais and Ubisoft in Montpellier). Nearly three-quarters of the companies surveyed develop video games as their core activity. The French industrial fabric of the video games sector is characterised by a massive presence of design and content development companies. This is how the industry is structured. The over-representation of this activity sector stems from a big tradition of content creation, but also from the large talent pool created by schools and universities that focus on video games, and a strong appetite for entrepreneurship among designers, programmers and young managers. Figure 1 : Video game companies in France Table 1 : Main business activity of companies surveyed Business activity 2015 2014 Development 74.7% 79.1% Service provision 11.0% 4.6% Other services* 5.5% 1.8% Publishing 4.8% 10.0% Distribution 2.1% 3.6% Manufacturer of accessories 2.1% 0.9% Total 100.0% 100.0% * media, marketing, communications, training, R&D Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - September 2015 Source : SNJV, October 2015 12 Annual Survey of the French Video Game Industry - 2015 ment provision Age 74.7% Under 211.0% 79.1% 4.6% 2015 29.4% 2014 16.5% rvices* ng Between5.5% 3 and 5 1.8% 27.5% 35.3% 23.9% 19.3% 28.2% 20.0% 10.0% Between4.8% 6 and 10 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 2.1% 3.6% Over 10 on urer of accessories TOTAL 2.1% 0.9% 100.0% 100.0% 100.0% carried between 4 May and 1 surveyed July 2015 Table 2:SurveyAge of out development studios Number of respondents: 109 companies (development studios), response rate: 100% arketing, communications, training, R&D 100.0% Age of development studios surveyed ried out between 4 May and 1 July 2015 respondents: 146 companies (all activities), response rate: 100% Age Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 2015 2014 23.9% 19.3% 28.2% 20.0% Figure 2 : Main business activity of Figure companies Figure 3 : Age of development studios surveyed in 16.5% 3: Age of development studios surveyed29.4% in 2015 Between 3 and 5 27.5% 35.3% surveyed 2015 Main business activity of companies surveyed 15 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Under 2 5.5% 4.8% 11.0% 2.1% Between 6 and 10 Over 10 19% TOTAL Développement 29% 100.0% 100.0% Survey carried out between 4 May and 1 July 2015 Développement Under 2 Services Number of respondents: 109 companies (development studios), response rate: 100% Service provision Between 3 and 5 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Other services* Autre* Between 6 and 10 Publishing Over 10 24% Figure 3: Age of development studios surveyed in 2015 Edition Distribution Distribution 74.7% 19% Moins d Entre 3 Entre 6 Plus de 28% 29% Survey carried out between 4 May and 1 July 2015 Moins de 2 ans Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response Number of respondents: 109 companies (development studios), response rate: 100% rate: 100% ried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Entre 3 et 5 ans Source: 2015 Annual survey of the- French Video Game Industry2015 - SNJV/IDATE Source: 2015 Barometer French Video Game Industry SNJV/IDATE - September Number of respondents: 146response companies (all100% activities), response rate: 100% of the respondents: 146 companies (all activities), rate: September 2015 2015 Video Annual survey of the-French Video Game Industry - SNJV/IDATE Entre 6 et 10 ans 15 Barometer Source: of the French Game Industry SNJV/IDATE - September 2015 - September 2015 arketing, communications, training, communications, R&D * media, marketing, training, R&D 24% 1.1.3. than ... But providing remains vital services for many remains vital for Plus de 10 ans ... But providing he companies surveyed, more than half are younger 5 years old (57%) services and3.. 19.3% are over old. This confirms industry is young and dynamic.more than half are Amongthethe companies surveyed, many In 2015, 58.7% the studios claim to provide services. This is less than last ye also note that the number under 2and years old is are significantly (+12.9 surveyed points) 28% younger thanof5respondents years old (57%) 19.3% over of 10higher 2015, 58.7% the studios surveyed claim to provide figure was studios 64.7%. responded ThisIndecrease in theofproportion of service provision, which could be expl 2014. This years is simply due to the fact that many more younger this year. old. This confirms the industry is young and dynamic. services. This is less than last year when the figure was composition of the survey sample, may also be the result of companies wanting to prioritis carried out between Mayalso and 1 July 2015 , because of a tight labour market around someSurvey design professions, we4are seeing a strong We can also note that the number of respondents underfor 2 a market 64.7%. This decrease in the proportion of service provision, their own content that is constantly demanding new companies being created straight after studies. Number of respondents: 109 companies (development studios), response rate: 100% innovation. years old is significantly higher (+12.9 points) than in 2014. which could be explained by the composition of the survey Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 This is simply due to the fact that many younger Tablemore 3: Service provision a business among studios to sample,asmay also beactivity the result of development companies wanting studios responded this year. However,Do because of a tight designing theirbusiness own content for a market that is you provide servicesprioritise In addition to your core activity? 1.1.3.design ... Butprofessions, providing services vital for many labour market around some we are remains constantly demanding innovation. 2015 20 rg © SNJV/IDATE 2015 6 also seeing a strong trend of new companies being created Yes 64. In 2015, 58.7% of the studios surveyed claim to provide services. This58.7% is less than last year when straight after studies. figure was 64.7%. This decrease in the proportion of service provision, which could be explained by No 41.3%activity Table 3 : Service provision as a business 35. composition may also be the result of companies wanting to prioritise design TOTALof the survey sample, 100.0% 100 among development studios own content for a market that is constantly demanding innovation. Table 2 : Age of developmenttheir studios surveyed Survey carried out between 4 May and 1 July 2015 Age Under 2 Between 3 and 5 of respondents: 109as companies (development studios),development response 100% 2014 2015 rate: studios Table 3:NumberService provision a business activity among 2015 2015 2014 Source: Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Do you provide services In addition Yesto your core business activity? 58.7% 64.7% 2015 16.5% Service provision among development studios No 41.3% 35.3% 35.3% 100.0% Yes No 29.4%4: Figure 27.5% Total 58.7% 100.0% 41.3% 2014 64.7% 35.3% Survey carried out between 4 May and 1 July 2015 Between 6 and 10 28.2% TOTAL 23.9% 100.0% Number of respondents: 109 companies (development studios), response 100.0% Over 10 19.3% 20.0% 100% Survey carried out between 4 May andrate: 1 July 2015 Source: 201541.3% Annual survey of the French Video Game Industry - SNJV/IDATE Number of100.0% respondents: 109 companies (development studios), response rate: 100% Total 100.0% 58.7% - September 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 Figure 4 : Service provision among development Number of respondents: 109 companies (development studios), response Figure 4: Service provision among development studios rate: 100% studios Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - September 2015 www.idate.org © SNJV/IDATE 2015 41.3% 58.7% YES NO Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - September 2015 www.idate.org © SNJV/IDATE 2015 13 Oui Non The studios between 5 and 10 years old are those that resort more to this activity (69.2%), ahead of those over 10 years old (61.9%) and younger than 5 years old (53.2%). We found no major change from the 2014 annual survey findings. Table 6 : Share of service provision in turnover, based on studio age Table 4 : Service provision based on studio age Age / service provision No Yes Under 5 46.8% 53.2% Between 5 and 10 30.8% 69.2% Over 10 38.1% 61.9% Total général 41.3% 58.7% Year/bracket Under 5 Between 5 and 10 Over 10 Overall average Average share of service provision in turnover 57,2% 74,6% 55,6% 61,9% 59,0% 69,9% 48,4% 61,3% 2014 annual Overall total survey Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Survey carried out between 4 May and 1 July 2015 100.0% Number of respondents: 54 companies (development studios that provide services, see above) 100.0% Survey carried out between May84.4% and 1 July 2015 Response4rate: 100.0% Number of respondents: 542015 companies (development studios provide see Erreur ! Source Source: Annual survey of the French Videothat Game Industryservices, - SNJV/IDATE above) September 2015 100.0% Response rate: 84.4% Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French60% Videoof Game Industry - SNJV/IDATE - September 2015 Number of respondents: 109 companies (development studios), response Finally, nearly studios define their services provided rate: 100% as specialised. Programming is the major service in this Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Finally, nearly 60% of studios(92.1% define of their services as increased specialised. specialisation cases). This provided service has - September 2015 Program service in this specialisation (92.1% of cases). This service has increased significantly significantly in one year, a sign that these skills are in high that these skills are in high demand. This business activity contributes significantly to studio demand. turnover. In fact, 61.9% of studio turnover is generated from providing services. This figure is very close to last Figure 5: Type of service provided by studios Figure 5 : Type of service provided by studios year’s percentage (61.3%). As turnover increases, the share of service provision decreases, as already observed in 2014. Service provision Globales Globales 40.6% 59.4% accounts for 70% of revenues for studios with a turnover Spécialisées Spécialisée less than 150,000 EUR, compared with 75.7% a year earlier. The opposite trend is found with the largest studios (turnover of more than 500,000 EUR) where the contribution 4 Mayout and 1 July 42015 Survey carried between May and 1 July 2015 of service provision to turnover increased bySurvey 10.5 carried pointsout between Number of respondents: 64 companies studios that providerate: 100% 64 companies (development studios(development that provide services), response between 2014 and 2015, from 46.1% to 56.6%.Number of respondents: services), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Table 5 : Average share of service provision in 7: Table The various types of specialised services provided by studios turnover, by revenue bracket Specify the type of services you provide: Year/bracket Turnover less than €150,000 Turnover between €150,000 and €500,000 Specialised services Table Turnover Programming more Overall Design than Game average User Interface €500,000 2015 7 : The various types of specialised services 92.1% provided by studios 2015 2014 42.1% Programming 92.1% 34.2% 64.3% 55.3% 42.9% User Interface 42.1% 17.9% 23.7% Animation 34.2% 23.7% 28.6% Production management 31.6% 13.2% 28.6% Level Design 28.9% 14.3% Modelling 23.7% 17.9% Texturing 23.7% 17.9% 10.5% Middleware 13.2% 17.9% 7.9% Special Effects 13.2% 5.3% 10.7% Other* 10.5% 5.3% 17.9% Consulting 10.5% 21.4% Physics 10.5% 7.1% 7.9% 3.6% Animation Average share of service provision in turnover 69.6% 66.2% Production management Game Design 56.6%Level61.9% Design 2014 annual survey 75.7% 64.3% 46.1%Texturing 61.3% Modelling Survey carried out between 4 May and 1 July 2015 Middleware Number of respondents: 54 companies (development studios that provide Special Effects services, see above) Other* Response rate: 84.4% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Consulting - September 2015 Physics Game First Level largest share Moreover, service provision accounts for the Motion of turnover among studios between 5 and 10 yearsCapture old Artificial (74.6%). It does not exceed 58% for the other studios. Intelligence Cinematics 55.3% Specialised services Over the last year, only younger studios (underAuthoring 5 years old) have seen this share decrease (less than 1.8 points). * training, communication First Level Survey carried out between 4Game May and 1 July 2015 31.6% 28.9% 13.2% 10.5% 10.5% 5.3% 5.3% Number of respondents: 38 companies (development studios 5.3% that provide specialised Motion Capture 7.1% services, see Erre introuvable. above) Response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Surveyof of small the French Game Industry - 2015 14 Annual 1.1.4. Sector composed primarily and Video young companies The average number of FTE jobs was 12.7 by mid-2015 among development studios w employees. This figure was 11.6 at the end of 2014, so an increase of 1.1 FTEs. Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 In 2015, the majority of companies surveyed were less than 5 years old (55.5%) and almost 8 less than 10 years old. Year founded 2015 2015 2014 Table 9: Breakdown of companies surveyed by date founded Companies less than 2 years old 28.8% 5.3% 10.7% Enter the date your company was founded: Companies between 3 and 5 years old 26.7% 5.3% Year founded 7.1% 2015 Companies between 6 and 10 years old 22.6% 5.3% Companies 7.1% less than 2 years old 28.8% Companies more than 10 years old 21.9% Specialised services Artificial Intelligence Cinematics Authoring Companies between 3 and 5 years old 26.7% * training, communication Total 100.0% Companies between 6 and 10 years old 22.6% Survey carried out between 4 May and 1 July 2015 Number of respondents: 38 companies (development studios that provide Companies more than 10 years old 21.9% specialised services, see Erreur : source de la référence non trouvée above) Survey carried out between 4 May and 1 July 2015 TOTAL 100.0% Response rate: 100% Number of respondents: 146 companies (all activities), response rate: 100% carried out between May and 1 July 2015survey of the French Video Game Industry - SNJV/IDATE Source: 2015 Annual survey of the French Video GameSurvey Industry - SNJV/IDATE - 4Source: 2015 Annual September 2015 Number of respondents: 146 September companies 2015 (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 4.Sector composed primarily of small and young Figure 7 : Breakdown of companies surveyed by Figure 7: Breakdown of companies surveyed by date founded companies date founded The average number of FTE jobs was 12.7 by mid2015 among development studios with fewer than 100 employees. This figure was 11.6 at the end of 2014, so an increase of 1.1 FTEs. 21.9% 28.8% Table 8 : Average FTE jobs based on company age (excluding studios with 100 FTE jobs or fewer) Between 5 and 10 Under 5 In 2014 8.0 22.6% Over 10 11.2 Table 8: 9.1 26.7% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4Number May and July 2015 146 companies (all activities), response rate: 100% of1respondents: 24.9 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 In 2015, at mid-year Overall average Companies less than 2 years old Companies between 3 and 5 years old Companies between 6 and 10 years old Companies more than 10 years old 11.6 Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 www.idate.org © SNJV/IDATE 2015 12.5 26.3 12.7 1.2.France, home to video entertainment production Average FTE jobs based on company age (excluding studios with 100 FTE jobs or fewer) Survey carried out between 4 May and 1 July 2015 1. Development studios favouring independence Overall average and producing ‘indie’ games 11.6 Company and FTE jobs101 in 2014 and 2015 Numberage of respondents: companies (development studios with fewer than 100 FTEs), response rate: 96.19% Under 5 Between 5 and 10 Over 10 Source: 2015 Annual survey of the French In 2014: 8.0 Video Game Industry 11.2 - SNJV/IDATE - 24.9 September 2015 In 2015, at mid-year 93.6%12.7 of studios claiming to be independent in 2015 compared with 85.9% in 2014, the ‘indie’ trend is growing. Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% This is undoubtedly due to the proliferation of microSource: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 6 : Breakdown of studios surveyed by date companies in the French video game sector, which is also Figure 6: Breakdown of studios surveyed by date founded founded a global phenomenon, and the impact of disintermediation in the sector. 26.3 24.9 9.1 12.5 26.3With Survey carried out between 4 May and 1 July 2015 Table 10 : Independent development studios 8.0 11.2 9.1 Moins de55years ans Less than 12.5 En 2014 Independent 2015 2014 Yes 93.6% 85.9% No 6.4% 14.1% Total 100.0% 100.0% En 2015, à mi-année Entre 55 and et 10 Between 10ans years Survey carried out between 4 May and 1 July 2015 In 2014 Plusthan de 10 More 10 ans years In 2015, at mid-year Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: Survey carried out between 4 May and 1 July 2015 100% Number of respondents: 101 companies (development studios with fewer than In 2015, the majority of companies surveyed were less than 5 years old (55.5%) and almost 80% were Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE 100 FTEs), response rate: 96.19% less than 10 years old. September 2015 Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Table 9: Breakdown of companies surveyed by date founded Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Enter the date your company was founded: Infounded 2015, the majority of companies Year than 5 less years (55.5%) Companies thanold 2 years old surveyed were less and almost 80% were less than 2015 28.8% Companies between 10 years old. 3 and 5 years old Companies between 6 and 10 years old 26.7% 22.6% Table 9 : Breakdown of companies surveyed by date founded Companies more than 10 years old TOTAL 21.9% 100.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 7: Breakdown of companies surveyed by date founded 21.9% 28.8% 15 Moins de Entre 3 et Entre 6 et Plus de 10 etween 4 May and 1 July 2015 nts: 109 companies (development studios), response rate: 100% eter of the French Video Game Industry - SNJV/IDATE - September 2015 ependent development Figure 8 studios : Independent development studios Table 12 : Genres of games developed by studios surveyed 6.4% YES NO Oui 93.6% Survey carried out between 4 May and 1 July 2015 etween 4 May Number and 1 July of 2015 respondents: 109 companies (development studios), response rate: nts: 109 companies 100% (development studios), response rate: 100% Source: 2015 Annual survey of the French- September Video Game2015 Industry - SNJV/IDATE eter of the French Video Game Industry - SNJV/IDATE September 2015 Non Genre 2015 2014 Adventure 35.8% 42.4% Strategy 34.9% 32.9% Action 34.9% 38.8% Puzzle games 33.9% 45.9% Arcade 33.0% 37.6% Educational 24.8% 29.4% Children 22.9% 27.1% Simulation 20.2% 14.1% Platform 20.2% 24.7% ypes of games developed, 60% of the studios surveyed claim to be creating indie games RPG Regarding types This of games 60% of the up to these l' games, with both typesthe growing. is due todeveloped, PCs and consoles opening Card games nd to strongstudios enthusiasm for accessible games on mobile indie platforms. surveyed claim to be creating games and f video game development studioswith alsoboth claimtypes to be growing. creating serious 50% ‘casual’ games, This is games, due compared Other 14. This indicates that this market is now seen as profitable for video game to PCs and consoles opening up to these types of game companies in Combat 19.3% 17.6% 13.8% 18.8% 11.9% 11.8% 11.0% 14.1% and to strong enthusiasm for accessible games on mobile es of gamesplatforms. developed by studios surveyed In 2015, 22% of video game development studios also describe the type of games you develop? claim to be creating serious games, compared with 11.8% 2015 2014 in 2014. This indicates60.6% that this market is now seen as 54.1% profitable for video game companies in its own right.. 50.5% 47.1% Board games 10.1% 15.3% Sports 9.2% 11.8% MMORPG 7.3% 9.4% Music 7.3% 11.8% FPS 6.4% 5.9% IDATE 2015 27.5% 28.2% Table 11 : Types of games 22.0% developed by studios 11.8% surveyed 7.3% 8.2% Type of game 2015 2014 Indie 60.6% 54.1% Casual 50.5% 47.1% Social 27.5% 28.2% Serious game 22.0% 11.8% AAA 7.3% 8.2% Educational 0.9% 2.4% Kids' games 0.9% 2.4% Connected object applications 0.9% 0.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 11 2. Publishers and distributors focusing on PC game catalogues 90% of the companies whose main activity involves publishing and distribution market their games for personal computers. Only 20% target home consoles and handheld game consoles. Table 13 : Publishing/distribution platforms (publishers/distributors) Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 There was a larger distribution of responses to the kinds of games being developed, which can be explained by the greater number of studios who responded. Devices 2015 Personal computers 90.0% Phones and smartphones 70.0% Tablets 60.0% Connected TVs 30.0% Home consoles 20.0% Handheld consoles 20.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 10 companies (publishers and distributors), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 ‘Adventure’ is the genre developed the most by the studios surveyed (35.8%). Last year it was ‘Puzzle games’ (45.9%), which has now dropped to 4th (33.9%). 16 Annual Survey of the French Video Game Industry - 2015 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 10 companies (publishers and distributors), response rate: 100% Figure 9 : Publishing/distribution platforms Publishing/distribution platforms (publishers/distributors) (publishers/distributors) 3. Dematerialised production dominated by mobile devices Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 9: Consoles portables 20.0% Consoles de salon 20.0% Tv Connectées Mobile platforms preferred by developers Studios are increasingly targeting smartphones and tablets for their titles (78% and 76.1% respectively). For comparison, in 2014, the figures for each of these platforms were higher (83.5% for mobile phones, 80% for tablets and 75.3% for PCs). The larger number of studios responding to this survey is probably the reason for this dilution. 30.0% Tablettes 60.0% Téléphones et Smartphones 70.0% Ordinateurs individuels 90.0% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 10 companies (publishers and distributors), response rate: 100% Source: 2015 Annual of the the preferred French Video Industry - SNJV/IDATE The personal computer still survey represents platformGame of publishers in France (52% of their catalogue targets this device), followed by mobile phones (17% of their catalogue) and tablets (16%). September 2015 Number of respondents: 10 companies (publishers and distributors), response rate: 100% More than 70% of development studios produce games for PCs. The percentages for home consoles and handheld consoles remains stable (29.4% and 15.6% respectively, compared with 00029.4% and 17.6% in 2014). Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Games published or distributed for handheld consoles have almost disappeared from catalogues (1.6% of the catalogue). The personal computer still represents the preferred Breakdown of catalogues by platform (publishers/distributors) platform of publishers in France (52% of their catalogue 2015 targets this device), followed by mobile52.4% phones (17% of Personal computers Phones smartphones 17.0% theirandcatalogue) and tablets (16%). Games published or Tablets 16.0% distributed for handheld consoles have almost disappeared Home consoles 11.8% Handheld consoles from catalogues (1.6% of the catalogue). 1.6% Connected TVs 1.2% Table 14: How is your catalogue broken down by platform? Platforms TOTAL With less than 13% of developers targeting connected objects and connected televisions, these platforms have lost some interest among studios, down -3.7 points and -5.7 points respectively. It is clear from this that the streaming game (or Games on Demand) market on connected TVs is still in its infancy despite encouraging signs. 100.0% Survey carried out between 4 May and 1 July 2015 Table 14 : Breakdown of catalogues by platform (publishers/distributors) Number of respondents: 5 companies (publishers and distributors), response rate: 50% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Platforms 2015 Personal computers 52.4% Phones and smartphones 17.0% Tablets 16.0% Home consoles 11.8% Handheld consoles 1.6% www.idate.org © SNJV/IDATE 2015 Connected TVs 1.2% Table 15 : Development platforms prioritised by studios Figure 10 : Breakdown of catalogues by platform (publishers/distributors) Breakdown of catalogues by platform (publishers/distributors) 1.6% 1.2% 16.0% 52.4% 17.0% 2014 83.5% Tablets 76.1% 80.0% Personal computers 70.6% 75.3% Home consoles 29.4% 29.4% Handheld consoles 15.6% 17.6% Connected objects 12.8% 17.6% Connected televisions 11.9% 16.5% Specialised consoles (Vtech, etc.) 2.8% 3.5% Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 11.8% 2015 78.0% 13 Survey carried out between 4 May and 1 July 2015 Number of respondents: 5 companies (publishers and distributors), response rate: 50% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Figure 10: Devices Phones and smartphones Personal Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Ordinateurs individuels Figure 11 : Development platforms prioritised by computers Phones and studios Figure 11: Development platforms prioritised by studios Téléphones et Smartphones smartphones 2.8% Consoles spécialisées (Vtech etc.) Tablettes Tablets 11.9% Télévisions Connectées 12.8% Objets connectés Home consoles Consoles de salon 15.6% Consoles portables Handheld 29.4% Consoles de salon Consoles portables 70.6% Ordinateurs individuels consoles Tablettes 76.1% Connected TVs Tv Connectées Téléphones et Smartphones 78.0% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Heterogeneous number of productions released Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE The total number of video game projects to be released by French studios by the end of 2015 is close to September 2015 Number of respondents: 5 companies (publishers and distributors), response rate: 50% Number of respondents: 109 companies (development studios), response rate: 100% Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 5 companies (publishers and distributors), response rate: 50% Source: 2015 Annualdominated survey of the Video Game Industry - SNJV/IDATE Dematerialised production byFrench mobile devices - September 2015 Mobile platforms preferred by developers Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 500 titles (including 180 titles by respondents of the 2015 barometer). In comparison, the number of titles released by French studios in 2014 was estimated at 570. Studios are increasingly targeting smartphones and tablets for their titles (78% and 76.1% respectively). 54.6% of studios expect to release 1 to 2 games by the end of 2015 (53.6% in 2014). For comparison, in 2014, the figures for each of these platforms were higher (83.5% for mobile phones, percentage of studios releasing more than 4 games is 10.2%, compared with 21.4% in 2014. 80% for tablets and 75.3% for PCs). The larger number of studios responding to this surveyThe is probably Presumably studios have decided to focus their efforts on quality rather than more games. This decrease the reason for this dilution. is also partly mitigated by an increase in studios planning to release 3 games (16.7% compared with 9.5% in 2014). More than 70% of development studios produce games for PCs. Table 16: New projects released in 2015 (development studios) 17 The percentages for home consoles and handheld consoles remains stable (29.4% respectively, compared with 00029.4% and 17.6% in 2014). How many new projects will you release to market in 2015? and 15.6% Number of projects 2015 2014 None 1 18.5% 35.2% 15.5% 34.5% 2 19.4% 19.1% 16.7% 9.5% With less than 13% of developers targeting connected objects and connected televisions, these 3 platforms 1: Development platforms prioritised by studios Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 oles spécialisées (Vtech etc.) 2.8% Survey carried out between 4 May and 1 July 2015 Heterogeneous number of productions released Table 17 : New projects released in 2015 Télévisions Connectées 11.9% companies (development studios), response rate: 99.08% The total number of video game projectsNumber to beof respondents: released 108(publishers/distributors) Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Objets connectés 12.8% by French studios by the end of 2015 is close to 500 titles 15.6% Number of projects 2015 2014 Consoles portables (including 180 titles by respondents of the 2015 annual The 10 publishers/distributors surveyed expect to publish 80 titles in 2015. Consoles 29.4% Between 1 and 5 40.0% survey). de salon Table 17: New projects released in 2015 (publishers/distributors) Ordinateurs individuelsthe number of titles released 70.6% In comparison, by French Between 5 and 10 20.0% How many new projects will you release to market in 2015? 76.1% studios Tablettes in 2014 was estimated at 570. Between 10 and 15 10.0% Number of projects 2015 Téléphones et Smartphones 78.0% More than 15 Between 1 and 5 40.0% 30.0% 54.6% of studios expect to release 1 to 2 games by the end Between 5 and 10 of 2015 in2015 2014). rried out between 4 May(53.6% and 1 July 57.2% 7.1% 7.1% 28.6% 2014 57.2% Total 20.0% 100.0% 7.1% 100.0% 10.0% 7.1% Survey carried out between 4 May and 130.0% July 2015 28.6% Number of respondents: 10 companies (publishers and distributors), response TOTAL 100.0% 100.0% 10.2%, compared with 21.4% in 2014. Presumably studios rate: 100% number of productions released Survey carried out between 4 May and 1 July 2015 have decided to focus their efforts on quality rather than Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Number of respondents: 10 companies (publishers and distributors), response rate: 100% more games. This decrease is also partly mitigated by an September 2015 10 and 15 f respondents: 109 companies (development studios), response rate: Between 100% More than 15 015 Barometer of the French Video of Game Industry - SNJV/IDATE - September The percentage studios releasing more than 4 2015 games is geneous al number of video game projects to be released by French studios by the of end 2015 is close to Source: 2015 Barometer the of French Video Game Industry - SNJV/IDATE - September 2015 planning release 3 games (16.7% s (includingincrease 180 titlesin bystudios respondents of theto 2015 barometer). compared with 9.5% in 2014). Figure 13: Figure 13 in: New projects released in New projects released 2015 (publishers/distributors) 2015 arison, the number of titles released by French studios in 2014 was estimated(publishers/distributors) at 570. of studios expect release to 2 gamesreleased by the endinof2015 2015 (53.6% in 2014). Tableto16 : New1 projects 30.0% rcentage of(development studios releasing more than 4 games is 10.2%, compared with 21.4% in 2014. studios) ably studios have decided to focus their efforts on quality rather than more games. This decrease Number of projects partly mitigated by an increase in studios planning2015 to release 3 tgames (16.7% compared with 2014). None 18.5% 15.5% 35.2% New projects released in12015 (development studios) 34.5% 2 to market in 2015? 19.4% ny new projects will you release 19.1% of projects 6: 3 2015 16.7% 9.5% 4 or more 18.5% 10.2% 35.2% 21.4% Total 100.0% 10.0% 2014 15.5% 34.5% 100.0% 19.4% 19.1% Entre 1 et 40.0% Between 1 and 5 Entre 5 et Between 5 and 10 Entre 10 e Between 10 and 15 Plus de 15 More than 15 20.0% Survey carried out between 4 May and 1 July 2015 16.7% 9.5% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: (publishers and response rate: 100% 10.2% studios), 21.4% Number of respondents: 108 companies (development response rate: 10 companies Number of respondents: 10distributors), companies (publishers and distributors), response Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 99.08% rate: 100% 100.0% 100.0% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE rried out between 4 May 2015 and 1 July 2015 September 2015 French developers September opt overwhelmingly for digital sales re f respondents: 108 companies (development studios), response rate: 99.08% 015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 studios are French developers opt overwhelmingly for isdigital Development mostly favouring 'digital' distribution, which more sales accessible and al Figure 12 : New projects released in 2015 2: direct relationship withDevelopment consumers. They are also managing traditional‘digital’ video game distr studios are notmostly favouring (development New projects released instudios) 2015 (development studios)networks. 10.2% 18.5% 16.7% 19.4% 35.2% distribution, which is more accessible and allows a direct relationship with consumers. They are also not managing • On handheld consoles, 76.5% (+16.5%) use distribution the PlayStation Network and 64.7% (-2%) use the traditional video game networks. Nintendo eShop. Aucun We see a very different picture for distribution on physical media, which is down more than 23 po None On handheld (+16.5%) useconsole the PlayStation to use physicalconsoles, media for76.5% releasing handheld games. 1 1Only 23.5% choose Network and 64.7% (-2%) use the Nintendo eShop. 2 2 We see a very different picture for distribution on physical 3 Table 18: Digital distribution strategyisfordown handheld consoles studios) media, which more than (development 23 points. Only 23.5% 3 4 or more choose to use physical media for releasing handheld How do you distribute your games for handheld consoles? 4 et plus console games. Distribution method 2015 201 PlayStation Network Nintendo eShop 76.5% 64.7% 60.0 66.7 Survey carried out between 4 May and 1 July 2015 Number of respondents: 108 companies (development studios), response rate: 99.08% org © SNJV/IDATE 2015 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Source: www.idate.org © SNJV/IDATE 2015 - September 2015 15 The 10 publishers/distributors surveyed expect to publish 80 titles in 2015. 18 Annual Survey of the French Video Game Industry - 2015 Xbox LIVE Marketplace Nintendo eShop 71.9% 43.8% 48.0% 48.0% Electronic physical media (cartridge, CD, DVD) 37.5% 40.0% Ouya Shop Other* 6.3% 6.3% 16.0% 12.0% * Leap Motion, Play Market, Uplay Survey carried out between 4 May and 1 July 2015 Table 18: Digital distribution strategy for handheld consoles (development studios) Distribution method 2015 Figure 15 : Digital distribution strategy for home consoles in 2015 (development studios) Figure 15: Digital distribution strategy for home consoles in 2015 (development studios) Number of respondents: 32 companies (studios that develop for home consoles), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 2014 PlayStation Network 76.5% 60.0% Nintendo eShop 64.7% 66.7% Physical media (cartridge, CD, DVD, etc.) 23.5% 46.7% Other* 0.0% 6.7% Ouya Shop 6.3% Autre 6.3% 37.5% Distribution par support physique (cartouche, 43.8% Nintendo Eshop 71.9% Xbox Live Marketplace 81.3% Playstation Network Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 32 companies (studios that develop for home consoles), www.idate.org © SNJV/IDATE 2015 17 response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 * KDDI Smart Pass Survey carried out between 4 May and 1 July 2015 Number of respondents: 17 companies (studios that develop for handheld consoles), response rate: 100% How do you distribute your games for handheld consoles? Source:media 2015 AnnualCD,survey of the French Video Game Industry - SNJV/IDATE Physical (cartridge, DVD, etc.) 23.5% 46.7%September 2015 Other* 0.0% 6.7% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 • On smartphones and tablets, there are two undisputed leaders creating a duopoly: the Apple Store and Google Play. They leave very little room for competitors with more than 95% of studios distributing their productions on these platforms. All other distribution methods have decreased significantly. * KDDI Smart Pass Survey carried out between 4 May and 1 July 2015 Figure 14 : Digital distribution strategy for handheld consoles in 2015 (development studios) Figure 14: Digital distribution strategy for handheld consoles in 2015 (development studios) Number of respondents: 17 companies (studios that develop for handheld consoles), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Distribution par support physique (cartouche, CD, DVD, …) Table 20 : Digital distribution strategy for mobile phones and smartphones (development studios) 23.5% Nintendo Eshop 64.7% Playstation Network 76.5% Distribution method 2015 2014 Apple Store 95.3% 97.2% Survey carried out between 4 May and 1 July 2015 Number of respondents: 17 companies (studios that develop for handheld consoles), response rate: 100% Survey carried out between 4 May and 1 July 2015 Number of respondents: 17 companies (studios that develop for handheld •consoles), On home consoles, therate: top three places are occupied by the PlayStation Network (81.3%), Xbox Live response 100% (71, 9%) and the Nintendo eShop (43.8%). Distribution on physical media continues to decline. Source: 2015 Annual survey of the French Video Industry - and SNJV/IDATE The main changes this year on home consoles concern the Game PlayStation Network Xbox Live, which have experienced September 2015 a sharp increase (+25.3 and +23.9 points respectively) thanks to the success of the Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 next generation consoles. Google Play 95.3% 95.8% Amazon App Store 38.8% 45.1% Windows Store 31.8% 35.2% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 BlackBerry World 5.9% 5.6% • On home consoles, the top three places Digital distribution strategy for home consoles (development studios) Number of respondents: 32 companies (studios that develop for home consoles), response rate: 100% are occupied by the PlayStation Network (81.3%), Other* 4.7% 9.8% How do you distribute your games for home consoles? Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Distribution method (71, 9%) and the Nintendo eShop 2015 2014 Xbox Live (43.8%). Browser 7.0% PlayStation Network 81.3% 56.0% • On smartphones and tablets, there are two undisputed leaders2.4% creating a duopoly: the Apple Store Distribution physical media continues 71.9% to decline. Xbox LIVE Marketplace on 48.0% and Google Play. They leave very little room for competitors with more than 95% of studios distributing these platforms. All other distribution methods have decreased significantly. Samsung Apps 0.0% 8.5% Nintendo eShop 43.8% 48.0% their productions on The main changes this year on home consoles37.5% concern40.0% the Electronic physical media (cartridge, CD, DVD) Table 20: Digital distribution strategy for mobile phones and smartphones (development studios) Nokia Ovi Store 0.0% 7.0% Ouya Shop 16.0% PlayStation Network and Xbox Live, which have6.3% experienced How do you distribute your games for mobile phones and smartphones? Other* 6.3% 12.0% Distribution method 2015 2014 a sharp increase (+25.3 and +23.9 points respectively) * Leap Motion, Play Market, Uplay Apple Store 95.3% 97.2% * Tizen Store, Fuhu Survey carried out between 4 May and 1 July 2015 Google Play 95.3% 95.8% thanks to the success of the next generation consoles. Survey carried out between 4 May and 1 July 2015 Number of respondents: 32 companies (studios that develop for home consoles), response rate: 100% Table 19: Amazon App Store Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Digital:distribution for home consolesstrategy in 2015 (development Table 19 Digitalstrategy distribution forstudios) home Ouya Shop studios) 6.3% consoles (development Figure 15: Autre 6.3% Distribution par support physique (cartouche, Distribution method Nintendo Eshop Xbox Live Marketplace 201543.8% 2014 71.9% Number of respondents: 85 companies (studios that develop for mobile phones and smartphones), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 56.0%81.3% Xbox LIVE Marketplace 71.9% 48.0% Nintendo eShop 43.8% 48.0% Electronic physical media (cartridge, CD, DVD) 37.5% Ouya Shop 6.3% 16.0% Other* 6.3% 12.0% 40.0% 7.0% Survey carried out between 4 May and 1 July 2015 81.3% www.idate.org © SNJV/IDATE 2015 0.0% Figure 16 : Digital distribution strategy for mobile phones and smartphones in 2015 (development studios) * Tizen Store, Fuhu PlayStation Network Playstation Network Survey carried out between 4 May and 1 July 2015 45.1% BlackBerry World Other* Nokia Ovi Store 37.5% 38.8% Number of respondents: 85 companies (studios that develop 31.8% 35.2% for mobile phones 5.9% 100% 5.6% and smartphones), response rate: 4.7% 9.8% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Browser 2.4% 7.0% September 2015 Samsung Apps 0.0% 8.5% Windows Store Figure 16: Digital distribution strategy for mobile phones and smartphones in 2015 (development studios) Navigateur 17 2.4% Autre 4.7% BlackBerry World 5.9% Windows Store Amazon App Store 31.8% 38.8% Google Play Store 95.3% Apple Store 95.3% Survey carried out between 4 May and 1 July 2015 Number of respondents: 85 companies (studios that develop for mobile phones and smartphones), response rate: 100% Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 * Leap Motion, Play Market, Uplay Number of respondents: 85 companies (studios that develop for mobile phones Survey carried out between 4 May and 1 July 2015 Table 21: Digital distribution strategy for tablets (development studios) and smartphones), response rate: 100% Number of respondents: 32 companies (studios that develop for home consoles), How do you distribute your games for tablets? Source: 2015 Annual survey of the French2015 Video Game Industry - SNJV/IDATE Distribution method 2014 response rate: 100% September 2015 Apple Store 95.2% 95.6% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Google Play 95.0% 92.6% September 2015 Amazon App Store 39.8% 50.0% Windows Store 33.7% 36.8% BlackBerry World 4.8% 7.4% Web browser Other* 1.2% 1.2% 7.4% 8.8% Samsung Apps Nokia Ovi Store 0.0% 0.0% 8.8% 7.4% Facebook 0.0% 2.9% * Tizen Store for 2015 19 www.idate.org © SNJV/IDATE 2015 18 Table 21 : Digital distribution strategy for tablets (development studios) Table 22 : Digital distribution strategy for personal computers (development studios) Distribution method 2015 2014 Distribution method Apple Store 95.2% 95.6% Online download platform (Steam, Google Play 95.0% 92.6% Amazon App Store 39.8% 50.0% Windows Store 33.7% 36.8% BlackBerry World 4.8% 7.4% Web browser 1.2% 7.4% Other* 1.2% 8.8% Samsung Apps 0.0% 8.8% Nokia Ovi Store 0.0% 7.4% Facebook 0.0% 2.9% Survey carried out between 4 May and 1 July 2015 Number of respondents: 83 companies (studios that develop for tablets), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 17 : Digital distribution strategy for tablets (development studios) Digital distribution strategy for tablets (development studios) Figure 17: Autre 1.2% 1.2% BlackBerry World Windows Store 69.8% Dedicated website 37.7% 44.4% Apple Store 28.6% N/A Facebook 23.4% 36.5% Electronic physical media (cartridge, CD, DVD) 22.1% 22.2% Downloadable client software on your site 20.8% 25.4% Flash games or browser-based streaming games (Kongregate, BigFish Games, Miniclip 15.6% N/A* Google Play 10.4% 12.7% Other* 3.9% 7.9% * Not analysed ** Amazon, Windows Store Survey carried out between 4 May and 1 July 2015 Number of respondents: 77 companies (studios that develop for PCs), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Figure 18 : Digital distribution strategy for personal Digital distribution strategy for personal computers (development studios) computers (development studios) Figure 18: 33.7% 39.8% Autre* Google Play Store 95.0% Apple Store 95.2% Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 83 companies (studios that develop for tablets), response •rate: Finally, on personal computers, the most common distribution methods are based on download 100% platforms (Steam, Humble, Green Man Gaming, etc.) with a usage rate of 65%. As for physical Source: 2015 Annual survey of the French Video Industry SNJV/IDATE distribution, only 22% of development studios use it and this Game figure has remained-stable over the last year. September 2015 Number of respondents: 83 companies (studios that develop for tablets), response rate: 100% Note there has been an overall decrease in percentages. One of the most pronounced is that of Facebook. Only 23.4% of studios developing for PC use Facebook as a way to distribute their games, compared with 36.5% in 2014. • Finally, on personal computers, the most common Table 22: Digital distribution strategy for personal computers (development studios) platforms distribution methods are based on download How do you distribute your games for PCs? (Steam,method Humble, Green Man Gaming, etc.) with a 2014 usage Distribution 2015 Online download platform (Steam, Metaboli, Nexway, GOG, rate of 65%. As for physical distribution, only 22% 65.0% 69.8% of Impulse, Gamersgate, etc.) Dedicated website 37.7% 44.4% development studios use it and this figure has remained Apple Store 28.6% N/A stable over the last year. Facebook 23.4% 36.5% Electronic physical media (cartridge, CD, DVD) Downloadable client software on your site Google Store Jeux flash ou en streaming dans le navigateur Logiciel client téléchargeable sur votre site Survey carried out between 4 May and 1 July 2015 22.1% 20.8% 22.2% 25.4% Note there has been an overall decrease 15.6% in percentages. N/A* One of the most pronounced is that 10.4% of Facebook.12.7%Only 3.9% 7.9% of studios developing for PC use Facebook as a way *23.4% Not analysed ** Amazon, Windows Store to distribute their games, compared with 36.5% in 2014. Survey carried out between 4 May and 1 July 2015 Flash games or browser-based streaming games (Kongregate, BigFish Games, Miniclip, etc.) Google Play Other* Number of respondents: 77 companies (studios that develop for PCs), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 www.idate.org © SNJV/IDATE 2015 65.0% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 4.8% Amazon App Store 2014 Humble, GOG, Gamersgate, etc.) * Tizen Store for 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 83 companies (studios that develop for tablets), response rate: 100% Source: 2015 Annual survey of the2ndFrench Video Game Industry - SNJV/IDATE Annual Barometer of the French Video Game Industry, Edition, 2015 September 2015 Navigateur web 2015 1.2.4. 19 Distribution par support physique électronique Facebook 3.9% 10.4% 15.6% 20.8% 22.1% 23.4% Apple Store 28.6% Site dédié Plate-forme de téléchargement sur Internet 37.7% 64.9% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 77 companies (studios that develop for PCs), response AAA rate:games 100%production in France: Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE There are 8 studios that produce 'AAA' titles. These games, which are aimed at multiple platforms, have September 2015 very high production budgets and development cycles of several years (comparable to blockbusters in the Number of respondents: 77 companies (studios that develop for PCs), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 movie industry), and are the most commercially successful on consoles and PCs. Distribution and marketing costs are also very high. AAA games production in France: There are 8 studios that produce ‘AAA’ titles. These games, which are aimed at multiple platforms, have very high Moreover, with such high investment needed, all studios producing AAA games with production budgets and almost development cycles of partner several publishers to finance their productions. These publishers contribute 64% of production costs for these studios on average and are therefore essential for getting these projects off the ground. years (comparable to blockbusters in the movie industry), The return on investment for thecommercially rights holders of these games is typically very good once the titles and are and are the most successful on consoles released: among the studios surveyed, those who produce AAA titles posted an average turnover of 13.5 million EUR in 2014. PCs. Distribution and marketing costs are also very high. It isintellectual therefore difficult for young companies to produce such New properties, ongoing creative energy and only studios withareexperience and byfinancial Inbig terms titles of production volume, more than 235 new projects currently being developed the studios surveyed (including 191 new intellectual properties). In total, in France we estimate this corresponds to a stability canvolume afford to650produce an530AAA game. The studios cumulative production of around projects including new intellectual properties. In 2014, this figure was estimated at 720 projects including 620 new intellectual properties. producing these games are all 10 years old or more, with an ofaverage have an average 92.7% the studios will155 developemployees at least 1 game andand about 40% will develop at least 3 (45% annual in 2014). This 5-point drop is probably because of development studios wanting to focus their investment on a production budget ofcommercial 13 million EUR. smaller number of titles to reduce the risk. Moreover, investment needed, almost all Table 23: Number with of projectssuch developedhigh in 2014 and 2015 (development studios) Number of projects developed studios producing AAA games partner with publishers to New projects 2015 2014 None 7.3% 5.9% finance their productions. These publishers contribute 64% 1 28.4% 25.9% of production costs for these studios on average and are therefore essential for getting these projects off the ground. It is therefore difficult for young companies to produce such big titles and only studios with experience and financial stability can afford to produce an AAA game. The studios producing these games are all 10 years old or more, with an average 155 employees and have an average annual production budget of 13 million EUR. www.idate.org © SNJV/IDATE 2015 20 20 Annual Survey of the French Video Game Industry - 2015 The return on investment for the rights holders of these games is typically very good once the titles are released: among the studios surveyed, those who produce AAA titles posted an average turnover of 13.5 million EUR in 2014. Among the games developed, 89% will be new intellectual properties. Such creative energy was also found last year (93%). Table 24 : Proportion of original IPs among projects under development (development studios) 4. New intellectual properties, ongoing creative energy Number of original IPs 2015 2014 None 11.0% 7.0% 1 36.7% 31.8% 2 28.4% 28.2% In terms of production volume, more than 235 new projects are currently being developed by the studios surveyed (including 191 new intellectual properties). In total, in France we estimate this corresponds to a cumulative production volume of around 650 projects including 530 new intellectual properties. In 2014, this figure was estimated at 720 projects including 620 new intellectual properties. 3 13.8% 16.5% 4 or more 10.1% 16.5% Total 100.0% 100.0% Survey carried out between 4 May and 1 July 2015 92.7% of the studios will develop at least 1 game and about Number of respondents: 101 companies (development studios developing at least new project in 2015, see above), response rate: 100% 40% will develop at least 3 (45% in 2014). This 5-point 1Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE drop is probably because of development studios wanting September 2015 to focus their investment on a smaller number of titles to reduce the commercial risk. Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Table 23 : Number of projects developed in 2014 Figure 10: and 2015 (development studios) New projects 2015 2014 None 7.3% 5.9% 1 28.4% 25.9% 2 22.9% 22.4% nual Barometer of the French Video Game Industry, 2nd Edition, 2015 3 21.1% 17.6% 4 or more 20.2% 28.2% 100.0% 100.0% umber of projects developed Total Figure 20 : Proportion of original IPs among projects under development in 2015 (development Breakdown of catalogues by platform (publishers/distributors) studios) 1.6% 1.2% Ordinateurs individu 11.8% Téléphones et Sma 16.0% 52.4% None 1 2 3 Consoles de salon Consoles portables 17.0% 22.9% Tablettes 22.4% Tv Connectées 21.1% 17.6% Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), rate: out between or more 20.2%response 28.2% Survey carried 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 100% OTAL 100.0% Number of respondents: 100.0% 5 companies (publishers distributors), response rate: 50%developing at Number of respondents: 101 and companies (development studios Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE least 1ofnew in 2015, seeIndustry above),-response rate:- September 100% rvey carried out between 4 May and 1 July 2015 Source: 2015 Barometer the project French Video Game SNJV/IDATE 2015 September 2015 Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE umber of respondents: 109 companies (development studios), response rate: 100% - September 2015 urce: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 gure 19: 1.2.3.inDematerialised production dominated by mobile devices Figure 19 : Number of projects developed 2015 Number of projects developed (development studios) in 2015 (development studios) Mobile platforms preferred by developers 7.3% Studios are increasingly targeting smartphones and tablets for their titles (78% and 76.1% re For comparison, in 2014, the figures for each of these platforms were higher (83.5% for mob 80% for tablets and 75.3% for PCs). The larger number of studios responding to this survey the reason for this Aucun dilution. 20.2% 28.4% 21.1% None 1 1 More than 70% of 2 development studios produce games for PCs. 2 3 The percentages 3for home consoles and handheld consoles remains stable (29.4% a 4 or more respectively, compared with 00029.4% and 17.6% in 2014). 4 et plus With less than 13% of developers targeting connected objects and connected televisions, thes have lost some interest among studios, down -3.7 points and -5.7 points respectively. It is cle rvey carried out between 4 May and 1 July 2015 that the streaming game (or Games on Demand) market on connected TVs is still in its infan Survey carried out between 4 May and 1 July 2015 umber of respondents: 109 companies (development studios), response rate: 100% encouraging signs. Number of respondents: 109 companies (development studios), response 22.9% urce: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 rate: 100% Table 15: Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Development platforms prioritised by studios mong the games developed, Such creative was games also for? - September 2015 89% will be new intellectual properties. Which platforms do energy you develop und last year (93%). Devices Phones and smartphones able 24: Proportion of original IPs among projects under development (development studios) Tablets f these new projects, how many will be original intellectual properties? Personal computers umber of original IPs 2015 2014 Home consoles one 11.0% 7.0% Handheld consoles 36.7%Connected objects 31.8% 28.4%Connected televisions 28.2% 21 13.8%Specialised consoles (Vtech, 16.5%etc.) 2015 78.0% 201 83.5 76.1% 70.6% 80.0 75.3 29.4% 29.4 15.6% 12.8% 17.6 17.6 11.9% 16.5 2.8% 3.5 Table 26: Video game distribution methods in 2014 and 2015 (development studios) Game distribution method Aucun 13.8% 1 2 1.3.Production models 36.7% strongly impacted by dematerialisation 3 Distribution method Dematerialised games 2015 100.0% 2014 100.0% Games sold on physical media (cartridge, CD, DVD, etc.) 29.4% 30.0% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Survey carried out between 4 May and 1 July 2015 distribution methods in 2014 and 2015 (development studios) FigureVideo22game: Video game distribution methods in 2015 2014 2015 (development studios) Number of respondents: 109 companies (development studios), response rate: 100% Table 26: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Game distribution method Distribution Figure 22: method Video game distribution methods in 2015 (development studios) Dematerialised games 4 et plus 100.0% Games sold on physical media (cartridge, CD, DVD, etc.) 28.4% 1. Fully dematerialised production within a context of disintermediation in the value chain 100.0% 100.0% 29.4% 30.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 22: ut between 4 May and 1 July 2015 Video game distribution methods in 2015 (development studios) 29.4% Self-publishing and disintermediation are central to ondents: 101 companies (development studios developing at least 1 new project in 2015, see Erreur ! Source du100.0% currentrate: production models. 75.2% of the studios surveyed Jeux dématérialisés JeuxGames vendus via un support physiquemedia (cartouche, sold on physical ble. above), response 100% Dematerialised games CD, DVD, …) etc.) (cartridge, CD, DVD, publish their productions themselves arometer of theclaim French to Video Game Industry - SNJV/IDATE - September 2015 (+3.4 points Survey carried out between 4 May and 1 July 2015 29.4% Survey carried109 outcompanies between 4 Maystudios), and 1response July 2015 Number of respondents: (development rate: 100% from 2014). Number of respondents: 109 companies (development studios), response rate: 100% Video game distribution methods in 2014 and 2015 (development studios) dématérialisés Jeux vendus via un support physique (cartouche, Source: 2015Jeux Annual survey of the French Video Game Industry - SNJV/IDATE CD, DVD, …) September100.0% 2015 100.0% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 on models strongly impacted by dematerialisation Figure 23: Table 25 : Development studios and self-publishing Survey carried out between 4 May and 1 July 2015 terialised production within a context of disintermediation in the value chain 109 companies (development studios), response rate: 100% Number of respondents: Figure 23of :theVideo game methods in 2014 Source: 2015 Barometer French Video Game Industry distribution - SNJV/IDATE - September 2015 Self-publishing 2015 2014 30% 29.4% andgame 2015 (development 23: studios Video distribution methods in 2014 and 2015studios) (development studios) ng and disintermediation are central to current production models. 75.2% Figure of2014 the Yes themselves (+3.475.2% 71.8% m to publish their productions points from 2014). 100.0% 100.0% No Development studios and self-publishing 24.8% 28.2% Total sh your productions yourself? 100.0% 100.0% ng Jeux dématérialisés 30% Number of respondents: 109 companies (development studios), response rate: 100% 2014 29.4% 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 75.2% 1.3.2. Number of respondents: 109 companies (development studios), response rate: 24.8% 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE 100.0% September 2015 ut between 4 May and 1 July 2015 Jeux vendus via un support physique (cartouche, CD, DVD, …) Survey carried out between 4 May and 1 July 2015 2015 1.3.2. ondents: 109 companies (development studios), response rate: 100% 2015 arometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 21 : Development studios and self- 2014 Jeux dématérialisés Jeux vendus unphysical support physique Games soldviaon media Business models: free-to-play still favoured Dematerialised games 71.8% (cartouche, CD, DVD, …) (cartridge, CD, DVD, etc.) 28.2% a 'free-to-play' model. It is now the dominant model in the Number of respondents: 109 companies (development studios), 100% Survey carriedtraditional out between 4 May andtoresponse 1 use Julyarate: 2015 industry, although segments continue pay-per-play approach. However, the free-to100.0% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - Septemberof 2015 play model has 5 points 109 from last year, probably because the relative difficulty in mastering Number of dropped respondents: companies (development studios), response rate: this complex approach. In addition, it is costly deploying the ARM strategies used by F2P (Acquisition, 100% and Monetisation). The most profitable games leveraging this model are well-established older Retention Business models: free-to-play still favoured titles, which 2015 are widely copied,survey but hardof to the compete with. Video Game Industry - SNJV/IDATE Source: Annual French September 2015 63.4% of studios claim to have adopted a 'free-to-play' model. It is nowinthe model in the Also of note is growth in the 'in-app advertising' model, and stability thedominant 'paid purchase without Survey out between 4 May 1 July 2015 63.4%carried of studios claim to and have adopted industry, segments continue to use a pay-per-play approach. However, the free-toadditionalalthough content' traditional model (47.6%). play model 5 points from last paid year,content' probablymodel because of the7 relative difficulty Finally, the has 'paiddropped purchase with additional is down points and 'pay in bymastering chapter' is this complex approach. In addition, it is costly deploying the ARM strategies used by F2P (Acquisition, down 10 points. Retention and Monetisation). The most profitable games leveraging this model are well-established older titles, which are widely copied, but hard to compete with. 2. Business models: free-to-play still favoured Development studios and in self-publishing in 2015 publishing 2015 63.4% of studios claim to have adopted a ‘free-to-play’ model. It is now the dominant model in the industry, although traditional segments continue to use a payOui YES per-play approach. However, the free-to-play model has NO Non dropped 5 points from last year, probably because of the relative difficulty in mastering this complex approach. In 75.2% addition, it is costly deploying the ARM strategies used by F2P (Acquisition, Retention and Monetisation). The Survey carried out between 4 May and 1 July 2015 ut between 4 May and 1 July 2015 most profitable games leveraging this model are wellNumber of respondents: 109 companies (development studios), response rate: ondents: 109 companies (development studios), response rate: 100% 100% established older titles, which are widely copied, but hard arometer of theSource: French 2015 VideoAnnual Game survey Industryof- the SNJV/IDATE - September 2015 - SNJV/IDATE French Video Game Industry to compete with. September 2015 Also of note os surveyed claim to publish their productions in a dematerialised format, while 29.4% useis growth in the ‘in-app advertising’ model, and stability in the ‘paid purchase without additional content’ ia. There was no notable change from 2014. All the studios surveyed claim to publish their productions model (47.6%). in a dematerialised format, while 29.4% use physical Finally, the ‘paid purchase with additional paid content’ media. There was no notable change from 2014. model is down 7 points and ‘pay by chapter’ is down 10 points. 24.8% Also of note is growth in the 'in-app advertising' model, and stability in the 'paid purchase without additional model www.idate.orgcontent' © SNJV/IDATE 2015(47.6%). 23 Finally, the 'paid purchase with additional paid content' model is down 7 points and 'pay by chapter' is down 10 points. www.idate.org © SNJV/IDATE 2015 Table 26 : Video game distribution methods in 2014 and 2015 (development studios) NJV/IDATE 2015 Distribution method 2015 2014 Dematerialised games 100.0% 100.0% Games sold on physical media (cartridge, CD, DVD, etc.) 29.4% 30.0% 23 Table 27 : Business models adopted in 2014 and 22 2015 (development studios) Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 22 Business models 2015 2014 Free-to-play with in-app purchases 63.4% 68.9% Paid purchase without additional content 47.6% 47.5% In-app advertising 39.0% 37.7% Paid purchase with additional paid content 11.0% 18.0% Pay by chapter 2.4% 13.1% Subscription 1.2% 0.0% Annual Survey of the French Video Game Industry - 2015 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Table 27: Business models adopted in 2014 and 2015 (development studios) business model(s) you prefer to use? *Which Subscription to a doplatform, licences, out-of-app advertising: Adsense website Business models 2015 2014 banners Free-to-play with in-app purchases 63.4% 68.9% Survey carried out between 4 May and 1 July 2015 Paid purchase without additional content 47.6% 47.5% Number of respondents: 82 companies (development studios), response In-app advertising 39.0% 37.7%rate: Paid purchase with additional paid content 11.0% 18.0% 75.2% Pay by chapter 2.4% 13.1% Source: 2015 Annual survey of the French Video Game Industry SNJV/IDATE Subscription 1.2% 0.0% September 2015 * Subscription to a platform, licences, out-of-app advertising: Adsense website banners Survey carried out between 4 May and 1 July 2015 Figure 24 : Business models adopted in 2015 (development studios) Figure 24: Business models adopted in 2015 (development studios) Number of respondents: 82 companies (development studios), response rate: 75.2% Abonnement As companies increase their payroll or even their turnover, they tend to use several business models. This partly stems from a desire to diversify the pricing strategy so the largest Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 number of users can be addressed. Figure 25: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Achat au chapitre Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 1.2% 2.4% Payant à l'achat avec contenu additionnel payant 11.0% Publicité in app 39.0% Payant à l'achat sans contenu additionnel 47.6% 63.4% Gratuit à l'achat avec in app purchase (free to Survey carried out between 4 May and 1 July 2015 Number of respondents: 82 companies (development studios), response rate: 75.2% Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 82 companies (development studios), response rate: Despite a slight decrease in the proportion of free-to-play, it remains the most used by French studios and 75.2% accounts for 40.4% of their catalogues. In 2015, the 'paid purchase without additional content' model is Source: 2015 Annual survey of the Video Game Industry - SNJV/IDATE not far behind, having seen strong growth overFrench the last year (+7%). September 2015 Lastly, the growth of the 'in-app advertising' model (+1.6 points) is expected to continue in the coming years. Average share of each of these business models in video game catalogues in 2015 (development studios) 3. Significant production budgets, but relatively Achat au chapitre 1.2%for marketing the low proportion reserved Abonnement 2.1% games Payant à l'achat avec contenu additionnel 4.1% Publicitéannual in app 12.4% In 2014, the average production budget was 1.33 Payant à l'achat sans contenu additionnel 39.9% million EUR. It could increase by 12.5% in 2015, reaching Gratuit à l'achat avec in app purchase (free to 40.4% 1.5 million EUR. Survey carried out between 4 May and 1 July 2015 However, there is a large disparity between the studios, Number of respondents: 78 companies (development studios), response rate: 71.6% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 shown by the median1 average of 200,000 EUR. As companies increase their payroll or even their turnover, they tend to use several business models. This partly stems from a desire to diversify the pricing strategy so the largest number of users can be addressed. Table 29 : Average annual production budgets per company (all companies) 1.3.3. Significant production budgets, but relatively low proportion reserved for marketing the games Year Amount Table 28: Average share ofdecrease each of these business models in video game catalogues in 2014 and 2015 Despite a slight in the proportion of free-to-play, (development studios) What proportion of your each of by these French business models represent? and accounts it remains thecatalogue mostdoesused studios Business models 2015 2014 for 40.4% of purchases their catalogues. In 2015,40.4% the ‘paid purchase Free-to-play with in-app 42.9% Paid purchase without additional content 39.9% 33.0% without additional content’ model is not far behind,10.8% having In-app advertising 12.4% Paid purchase with additional paid content 4.1% 6.4% seen strong growth over the last year (+7%). Subscription 2.1% 3.2% Lastly, the growth of the ‘in-app advertising’ model Pay by chapter 1.2% 3.7%(+1.6 TOTAL 100.0% 100.0% points) is expected to continue in the coming years. * Subscription to a platform, licences, out-of-app advertising: Adsense website banners Table 28 : Average share of each of these business models in video game catalogues in 2014 and 2015 (development studios) Survey carried out between 4 May and 1 July 2015 In 2014, the average annual production budget was 1.33 million EUR. It could increase by 12.5% in 2015, reaching 1.5 million EUR. 2 However, there is a large disparity between the studios, shown by the median average of 200,000 EUR. In 2014 €1,334,859 2015 estimate €1,501,364 Table 29: Average annual production budgets per company (all companies) Survey carried out between 4 May and 1 July 2015 Number of respondents: 97 companies (all activities), response rate: 66.4% Amount Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE In 2014: €1,334,859 September 2015 2015 estimate €1,501,364 Average annual production budgets per company Year Figure 26 : Average annual production budgets per company (all companies) (in millions of EUR) Survey carried out between 4 May and 1 July 2015 Number of respondents: 78 companies (development studios), response rate: 71.6% Number of respondents: 97 companies (all activities), response rate: 66.4% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 26: Average annual production budgets per company (all companies) (in millions of EUR) 1,34 Business models 2015 1,50 2014 www.idate.org © SNJV/IDATE 2015 24 Free-to-play with in-app purchases 40.4% 42.9% En In 2014 2014 Estimation 2015 2015 estimate Survey carried out between 4 May and 1 July 2015 Paid purchase without additional content 39.9% 33.0% In-app advertising 12.4% 10.8% Survey carried out between 4 May and 1 July 2015 Number of respondents: 97 companies (all activities), response rate: 66.4% INSEE definition: 'If aAnnual distributionsurvey of wages, of income, etc,Video is sequenced, the Industry median is the- value which splits this Source: 2015 the turnover, French Game SNJV/IDATE distribution into two equal parts. For a distribution of wages, for example, the median is the wage below which 50% of salaries are September 2015 situated. Equivalently, it is the wage above which 50% of salaries are situated.' Paid purchase with additio4.1% nal paid content 6.4% www.idate.org © SNJV/IDATE 2015 Subscription 2.1% 3.2% Pay by chapter 1.2% 3.7% Total 100.0% 100.0% Number of respondents: 97 companies (all activities), response rate: 66.4% 2 If considering only development studio responses, the overall average production budget amounted to 1.26 million EUR in 2014 and could reach 1.44 million EUR by the end of 2015 (+14%). Table 30 : Average annual production budgets per studio (development studios) * Subscription to a platform, licences, out-of-app advertising: Adsense website banners Survey carried out between 4 May and 1 July 2015 Number of respondents: 78 companies (development studios), response rate: 71.6% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Figure 25 : Average share of each of these business models inofvideo game catalogues in 2015 Figure 25: Average share of each these business models in video game catalogues in 2015 (development studios) (development studios) Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Achat au chapitre Abonnement Payant à l'achat avec contenu additionnel Publicité in app 25 Year Amount In 2014 €1,261,359 2015 estimate €1,440,358 Survey carried out between 4 May and 1 July 2015 Number of respondents: 90 companies (development studios), response rate: 82.6% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 1.2% 2.1% 2 INSEE definition: ‘If a distribution of wages, income, turnover, etc, is sequenced, the median is the value which splits this distribution into two equal parts. For a distribution of wages, for example, the median is the wage below which 50% of salaries are situated. Equivalently, it is the wage above which 50% of salaries are situated.’ 4.1% 12.4% Payant à l'achat sans contenu additionnel 39.9% Gratuit à l'achat avec in app purchase (free to 40.4% Survey carried out between 4 May and 1 July 2015 Number of respondents: 78 companies (development studios), response rate: 71.6% Survey carried out between 4 May and 1 July 2015 Number of respondents: 78 companies (development studios), response rate: 71.6% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 As companies increase their payroll or even their turnover, they tend to use several business models. This partly stems from a desire to diversify the pricing strategy so the largest number of users can be addressed. 23 1.3.3. Significant production budgets, but relatively low proportion reserved for marketing the games Average annual production budgets per studio Year Amount In 2014: €1,261,359 2015 estimate €1,440,358 Survey carried out between 4 May and 1 July 2015 Figure 27 : Average annual production budgets per studio (development studios) millions euros) Figure 27: Average annual production budgets per studio(in (development studios)of (in millions of euros) Table 32 : Average annual production budgets per game and per platform (development studios with a turnover less than 10M EUR) Number of respondents: 90 companies (development studios), response rate: 82.6% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 1,44 1,26 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 2014 InEn2014 Estimation 2015 2015 estimate Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 90 companies (development studios), response rate: 82.6% Survey carried out between 4 May and 1 July 2015 Production budget / device In 2014: 2015 estimate Production budget / device €742,727 €852,083 Home consoles €469,098 €492,183 2015 Barometer of the French 90 Videocompanies Game Industry -(development - September 2015 response rate: Number ofonly respondents: studios), IfSource: considering development studio responses,SNJV/IDATE the overall average production budget amounted to Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 1.26 million EUR in 2014 and could reach 1.44 million EUR by the end of 2015 (+14%). 82.6% If considering only studios with a turnover less than 10 million EUR, their average budget for 2014 and Source: 2015 Annual survey of the French Video Game Industry SNJV/IDATE 2015 is about 595,000 EUR. Table 30: Average annual production budgets per studio (development studios) Personal computers €147,930 September 2015 Average annual production budgets per studio Table 31: Average annual production budgets (development studios with a turnover less than 10M EUR) Average annual production budgets (development studios with a turnover less than 10M EUR) Year Amount Tablets €54,000 €65,833 Handheld consoles €51,667 €58,333 Connected objects €50,000 €15,000 The average budget per game and per platform was 207,000 EUR in 2014 and 225,000 EUR in 2015, an estimated increase of 8.6%. This corroborates the idea that studios are developing fewer games in 2015, but giving them a larger budget. Unsurprisingly, the highest budgets are allocated to games for home consoles and personal computers, with budgets of more than 850,000 EUR and 490,000 EUR respectively in 2015. Other platforms generally have a budget below 160,000 EUR per game. This difference is accentuated because on consoles and PCs, the development cycle generally spans several years in contrast to mobile games, which can be developed in a year or even less. If considering only studios with a turnover less than 10 €1,261,359 Amount €1,440,358 million EUR, their average budget for 2014 and 2015 is €594,835 Survey carried out between 4 May and 1 July 2015 2015 estimate €598,451 about 595,000 EUR. Number of respondents: 90 companies (development studios), response rate: 82.6% Survey carried out between 4 May and 1 July 2015 InYear 2014: 2015 estimate In 2014: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 68 companies (development studios with a turnover of less than 10M EUR), response rate: 89.47% Table 31 : Average annual production budgets (development studios with a turnover less than 10M EUR) 0,595 0,598 Specialised consoles €19,100 €13,500 (Vtech,Average etc.) annual production budgets per game and per platform (development studios with a Source:27: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September studios) 2015 Figure Average annual production budgets per studio (development (in millions of euros) Table 32: Figure 28: Average annual production budgets (development studios with 1,44a turnover less than 10M EUR) (in millions of EUR) 1,26 turnover less than 10M EUR) Connected televisions €207,142 In 2014 En 2014 2015 estimate In 2014: 2015 estimate Connected objects €51,667 €58,333 Specialised consoles (Vtech, etc.) Connected televisions €50,000 €19,100 €15,000 €13,500 €207,142 €224,880 Survey carried out between 4 May and 1 July 2015 €742,727 €852,083 Number of respondents: 62 companies (development studios with a€492,183 turnover of Personal computers €469,098 less than 10M EUR), response rate: 81.58% Mobile phones and smartphones €147,930 €161,000 Tablets €141,105 Source: 2015 Annual survey of the French Video€122,611 Game Industry - SNJV/IDATE Handheld consoles €54,000 €65,833 September 2015 Amount Survey carried out between 4 May and 1 July 2015 En 2014 Home consoles Estimation 2015 €594,835 Estimation 2015 €598,451 Number of respondents: 90 companies (development studios), response rate: 82.6% Survey2015 carried out between 4 May andVideo 1 JulyGame 2015Industry - SNJV/IDATE - September 2015 Source: Barometer of the French Number of respondents: 68 companies (development studios with a turnover of less than 10M EUR), response rate: 89.47% Survey carried out between 4 May and 1 July 2015 If considering only studios with a turnover less than 10 million EUR, their average budget for 2014 and TOTAL Number respondents: 68 companies (development studios with a turnover of 2015 is aboutof 595,000 EUR. Survey carried out between 4 May and 1 July 2015 less than 10M EUR), response rate: 89.47% Table 31: Average annual production budgets (development studios with a turnover less than 10M EUR) Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Average annual production budgets (development studios with a turnover less than 10M EUR) September 2015 www.idate.org © SNJV/IDATE 2015 Year Amount In 2014: €594,835 2015 estimate €598,451 Figure 29 : Average annual production budgets per game and per platform (development studios with a Figure 29: Average annual production budgets per game and per platform (development studios with a turnover less than 10M EUR) turnover less than 10M EUR) (in millions of EUR)(in millions of EUR) 26 Number of respondents: 62 companies (development studios with a turnover of less than 10M EUR), response rate: 81.58% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 0,74 Figure 28 : Average annual production budgets Number of respondents: 68 companies (development studios with a turnover of less than 10M EUR), response rate: 89.47% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015less than (development studios with a turnover Figure 28: Average annual production budgets (development 10M EUR) (in millions of EUR) studios with a turnover less than 10M EUR) (in millions of EUR) Survey carried out between 4 May and 1 July 2015 0,595 €224,880 Average production budgets per game and per platform (excluding studios with a turnover greater than 10M EUR) Production budget / device Year €161,000 Mobile phones and Source: 2015 Barometer of the French Video Game Industry€122,611 - SNJV/IDATE - September 2015 €141,105 smartphones 0,85 Budget de production moyen 2014 0,47 0,49 Budget de production moyen 2015 0,15 0,16 0,598 Consoles de Ordinateurs salon Individuels 0,12 0,14 Téléphones mobiles et Smartphones Tablettes 0,05 0,07 0,05 0,06 0,05 Consoles portables Objets connectés Consoles spécialisées (VTech, etc.) 0,01 0,02 0,01 Télévisions connectées Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 62 companies (development studios with a turnover of lessphase thanof10M EUR),involving response rate: 81.58% The production communications and marketing costs in particular is very important for the success2015 of a video game.survey All of theofstudios reserve an average of 11.8% of their -production budget -to Source: Annual the French Video Game Industry SNJV/IDATE promoting their games, which is relatively low given the strategic nature of this phase, but also given the September high percentage2015 of studios who self-publish their games, especially on dematerialised platforms. This Number of respondents: 62 companies (development studios with a turnover of less than 10M EUR), response rate: 81.58% 2014 InEn2014 Estimation 2015 2015 estimate Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 68 companies (development studios with a turnover of less than 10M EUR), response rate: 89.47% www.idate.org SNJV/IDATE 2015 Source:© 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Number of respondents: 68 companies (development studios with a turnover of less than 10M EUR), response rate: 89.47% 26 reflects the low investment capacity of development studios in general. The phase of production involving communications and marketing costs in particular is very important for the success of a video game. All of the studios reserve an average of 11.8% of their production budget to promoting their games, which is relatively low given the strategic nature of this phase, but also given the high percentage of studios who self-publish their games, especially on dematerialised platforms. This reflects the low investment capacity of development studios in general. www.idate.org © SNJV/IDATE 2015 The average budget per game and per platform was 207,000 EUR in 2014 and 225,000 EUR in 2015, an estimated increase of 8.6%. This corroborates the idea that studios are developing fewer games in 2015, but giving them a larger budget. Unsurprisingly, the highest budgets are allocated to games for home consoles and personal computers, with budgets of more than 850,000 EUR and 490,000 EUR respectively in 2015. Other platforms generally have a budget below 160,000 EUR per game. This difference is accentuated because on consoles and PCs, the development cycle generally spans several years in contrast to mobile games, which can be developed in a year or even less. 24 27 Annual Survey of the French Video Game Industry - 2015 Table 33 : Proportion of production budget dedicated to promoting games (development studios) Proportion/device Figure 31 : Proportion of production budget dedicated to promoting games (development studios withof aproduction turnover less tothan 10M Figure 31: Proportion budget dedicated promoting gamesEUR) (development studios with a Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 turnover less than 10M EUR) % Tablettes Proportion/device 15.1% Personal computers 12.5% Home consoles 12.5% Mobile phones and smartphones 10.6% Tablets 8.1% Handheld consoles 0.7% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Connected televisions Home consoles Survey carried out between 4 Mobile phones smartphones Number ofandrespondents: 87 Tablets 79.82 % Handheld consoles Source: televisions 2015 Annual Connected Connected objects September 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 72 companies (development studios with a turnover of Ifless we break down by studio age, we see81.81% that those studios under 5 years old reserve the largest than it10M EUR), response rate: proportion of their production budget to promoting their games, with a 14.9% share. Young companies Source: 2015 survey the French Video Industry - SNJV/IDATE are probably moreAnnual in tune with socialofmedia environments andGame their impact on sales of their products. Furthermore, Septembermotivated 2015 by the opportunity to capture a larger share of the revenue generated, they are Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 increasingly foregoing the use of intermediaries to market their games. And they are gradually realising the kind of communication and marketing control they can seize, which was previously the domain of experienced publishers. 11.8% Proportion of production budget dedicated to promoting games based on studio age 15.1% 10.6% 8.1% survey of the French Video Game Industry - SNJV/IDATE 0.7% 0.7% 0.0% 11.8% Figure 30 : Proportion of production budget dedicated to promoting games (development studios) Figure 30: Proportion of production budget dedicated to promoting games (development studios) TOTAL Survey carried out between 4 May and 1 July 2015 Number of respondents: 87 companies (development studios), response rate: 79.82 % Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Objets connectés 0.7% 0.7% Consoles portables If we break it down by studio age, we see that those studios Proportion of production budget dedicated to promoting games based on studio age under 5 years old reserve the largest proportion of their production budget to promoting their games, with aOver 14.9% Age/devices Under 5 Between 5 and 10 10 share. Young companies 18.6% are probably 5.5% more in tune with Personal computers 10.0% Home consoles 18.3% 3.1% 14.1% social media environments and their impact on sales of Mobile phones and smartphones 16.0% 6.5% 10.5% Tablets 11.9% motivated6.1% 14.4% their products. Furthermore, by the opportunity Handheld consoles 5.5% 10.0% to capture a larger share 9.0% of the revenue generated, they Connected televisions 0.0% 0.0% 1.0% Connected objects 1.7% are increasingly foregoing0.0%the use of0.0%intermediaries to TOTAL 14.9% 6.6% 11.2% market games. And they are gradually realising the Survey carried out their between 4 May and 1 July 2015 Number of respondents: 86 companies (development studios), response rate: 78.9% kind of communication and marketing control they can Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 seize, which ofwas previously domain of on experienced Figure 32: Proportion production budget dedicatedthe to promoting games based studio age publishers. 20.0% Table 35: % 12.5% May and 1 July 2015 12.5% companies (development studios), response rate: Télévisions connectées 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 8.1% Tablettes 16.3% Number of respondents: 72 companies (development studios with a turnover of less than 10M EUR), response rate: 81.81% 0.7% Specialised consoles (Vtech, etc.) 15.7% Survey carried out between 4 May and 1 July 2015 Proportion of production budget dedicated to promoting games (development studios) Personal computers 9.3% Consoles de salon Proportion of production budget dedicated to promoting games (development Connected objects 0.0% studios) Specialised consoles (Vtech, etc.) 9.3% Consoles portables Ordinateurs Individuels Table 33: Proportion/device 8.5% Téléphones mobiles et Smartphones 10.6% Téléphones mobiles et Smartphones 12.5% Consoles de salon 12.5% Ordinateurs Individuels 15.1% Moins de 5 ans Entre 5 et 10 ans Plus de 10 ans Table 35 : Proportion of production budget dedicated to promoting games based on studio age Survey carried out between 4 May and 1 July 2015 Under 5 Between 5 Over 10 Consoles Télévisions Objets and 10 18.6% 5.5% Home consoles 18.3% 3.1% 14.1% Mobile phones and smartphones 16.0% 6.5% 10.5% Tablets 11.9% 6.1% 14.4% Handheld consoles 9.0% 5.5% 10.0% Survey carried out between 4 May and 1 July 2015 Connected televisions 0.0% 0.0% 1.0% Proportion/device % Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Connected objects 0.0% 0.0% 1.7% Total 14.9% 6.6% 11.2% Survey carried out between 4 May and 1 July 2015 Number of respondents: 87 companies (development studios), response rate: Table 34: % Proportion of production budget dedicated to promoting games (development studios with a 79.82 turnover less than 10M EUR) Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Proportion of production budget dedicated to promoting games (development studios with a turnover less September than 10M EUR) 2015 Number of respondents: 87 companies (development studios), response rate: 79.82 % Age/devices Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Proportion/device % Home consoles 16.3% Personal computers Handheld consoles 15.7% www.idate.org © SNJV/IDATE 2015 10.2% Number of respondents: 72 companies (development studios with a turnover of less than 10M EUR), response rate: 81.81% Home consoles 16.3% Personal computers 15.7% Handheld consoles 9.3% www.idate.org © SNJV/IDATE 2015 Mobile phones and smartphones 9.3% Tablets 8.5% Connected objects 0.0% Specialised consoles (Vtech, etc.) 0.0% Total 10.2% Consoles de salon Personal computers 9.3% Table 34 : Proportion of production budget Mobile phones and smartphones 9.3% Tablets 8.5% dedicated to promoting games (development Connected objects 0.0% Specialised consoles (Vtech, studios with aetc.)turnover less than 10M 0.0% EUR) TOTAL Ordinateurs Individuels 28 Téléphones mobiles et Smartphones Tablettes portables connectées connectés 10.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 86 companies (development studios), response rate: 78.9% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 72 companies (development studios with a turnover of less than 10M EUR), response rate: 81.81% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 25 29 Mobile phones and smartphones 16.0% 6.5% 10.5% Tablets Handheld consoles 11.9% 9.0% 6.1% 5.5% 14.4% 10.0% Connected televisions 0.0% 0.0% 1.0% Connected objects TOTAL 0.0% 14.9% 0.0% 6.6% 1.7% 11.2% Figure 32 : Proportion of production budget dedicated to promoting games based on studio age Survey carried out between 4 May and 1 July 2015 Number of respondents: 86 companies (development studios), response rate: 78.9% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 32: 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Proportion of production budget dedicated to promoting games based on studio age Moins de 5 ans Entre 5 et 10 ans Plus de 10 ans Ordinateurs Individuels Consoles de salon Téléphones mobiles et Smartphones Tablettes Consoles portables Télévisions connectées Objets connectés Survey carried out between 4 May and 1 July 2015 29 Number of respondents: 86 companies (development studios), response rate: 78.9% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 www.idate.org © SNJV/IDATE 2015 However, the above percentages do not reflect the promotion budget amount. The average promotion budget strongly increases with age. It is 20,000 EUR for studios younger than 5 and more than 70,000 EUR for those over 10 years old. The latter can even allocate nearly half a million euros towards their promotion budget for home console games. to self-financing to produce their games. The two main reasons behind this high percentage are the significant difficulties in accessing external funding, combined with the desire to keep control of projects. Nevertheless, public funding support for production is widely used by the studios. For example, the Fonds d’Aide au Jeu Vidéo (FAJV) is used by nearly half of the studios and the Crédit d’Impôt Jeu Vidéo (CIJV) tax credit is used by 20% of the studios, up from last year. Publishers remain important partners for financing production for one in four studios, although this model is somewhat declining. The concern comes from very low use of bank credit, also in sharp decline. It seems banks still seem to have a certain distrust regarding development studios. Table 37 : Types of funding used to finance productions (development studios) Table 36 : Budget allocated for promoting games based on studio age Age/devices Under 5 Between 5 and 10 Over 10 Personal computers €45,155.17 €41,939.79 €69,022.22 Home consoles €27,133.33 €51,825.71 €493,904.17 Mobile phones and smartphones €19,869.70 €11,910.74 €38,514.00 Tablets €12,874.36 €6,907.06 €60,464.84 Handheld consoles €1,800.00 €3,758.33 €15,000.00 Connected televisions €0 €0 €200.00 Type of funding 2015 2014 Self-financed 90.8% 56.5%1 Fonds d'aide au jeu vidéo (FAJV) 44.0% 47.1% Publishers 26.6% 37.6% Crédit d'impôt jeu vidéo (CIJV) 20.2% 16.5% Regional aid 19.3% 25.9% Bank loan 14.7% 24.7% Crowdfunding 11.9% 9.4% Customer financing (other than a publisher) 10.1% 15.3% Private investors 3.7% 17.6% 3.7% 7.1% 1.8% 9.4% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 MEDIA programme Crédit d'impôt recherche (CIR) How do you finance your productions? Regional aid 19.3% 25.9% Bank loan Survey carried Crowdfunding 14.7% 24.7% out between 4 May and 1 July 2015 11.9% 9.4% Number of respondents: 109 companies 10.1% (development studios), response rate: Customer financing (other than a publisher) 15.3% 100%investors Private 3.7% 17.6% MEDIA programme 7.1% Source: 2015 Annual survey of the French3.7% Video Game Industry - SNJV/IDATE Crédit d'impôt recherche (CIR) 1.8% 9.4% September 2015 Survey carried out between 4 May and 1 July 2015 Figure 33 : Types of funding used to finance productions Figure 33: Types of funding(development used to finance productions studios) (development studios) Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Connected objects €0 €0 €1,166.67 Average €19,709.24 €26,021.43 €74,446.16 Survey carried out between 4 May and 1 July 2015 Number of respondents: 86 companies (development studios), response rate: 78.9% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 4. Mainly self-financed production, which illustrates the low attractiveness of development studios to financial institutions Crédit d'impôt recherche (CIR) Programme MEDIA Investisseurs privés Financement client (autre qu'un éditeur) Financement participatif (crowdfunding) Emprunt bancaire Aides régionales Crédit d'impôt jeu vidéo (CIJV) Editeurs Fonds d'aide au jeu vidéo (FAJV) Autofinancement 1.8% 3.7% 3.7% 10.1% 11.9% 14.7% 19.3% 20.2% 26.6% 44.0% 90.8% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% When measuring the impact of the different types of financing for production, we see that self-financing Source: French Video Game Industry - SNJV/IDATE remains the 2015 primaryAnnual source ofsurvey financingof forthe almost two-thirds of the studios, with publishers as the second most important. 2015 Public aid, although commonly used by the studios, ultimately only contributes a little to September Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 In general, self-financing is one of the main financing sources for a company. Although it provides financial independence, the low capacity of studios to attract investment also generally hinders development of productions. 90.8% of the studios surveyed therefore have had to resort production. When Breakdown measuring the impact of the different types of of types of financing used in production budgets (development studios) financing for production, we see that self-financing 2015 remains the primary source of financing for almost twoSelf-financed 59.5% Publishers thirds of the studios, with publishers as the13.5% second most Table 38: What percentage of your production is financed by these types of funding? Type of funding Fonds d'aide au jeu vidéo (FAJV) 7.9% Customer financing (other than a publisher) Private investors 3 5.0% 4.6% Crédit d'impôt jeu vidéo (CIJV) 1.5% Crowdfunding 1.3% Crédit d'impôt recherche (CIR) MEDIA programme 0.9% Self-financing was not included as a default choice for3.0% the 2014 annual Bank loan survey, Regional aidwhich explains the low percentage 2.6% 26 0.2% Annual Survey of the French Video Game Industry - 2015 TOTAL 100.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Table 39 : Financing based on studio age important. Public aid, although commonly used by the studios, ultimately only contributes a little to production. Table 38 : Breakdown of types of financing used in production budgets (development studios) Type of funding Under 5 Between 5 and 10 Over 10 Self-financed 91.9% 92.3% 85.7% Fonds d'aide au jeu vidéo (FAJV) 46.8% 30.8% 52.4% Publishers 16.1% 23.1% 61.9% Regional aid 19.4% 19.2% 19.0% Crédit d'impôt jeu vidéo (CIJV) 14.5% 23.1% 28.6% Bank loan 16.1% 11.5% 14.3% Crowdfunding 14.5% 7.7% 9.5% Type of funding 2015 Self-financed 59.5% Publishers 13.5% Fonds d'aide au jeu vidéo (FAJV) 7.9% Customer financing (other than a publisher) 5.0% Private investors 4.6% Bank loan 3.0% Regional aid 2.6% Customer financing (other than a publisher) 8.1% 15.4% 9.5% Crédit d'impôt jeu vidéo (CIJV) 1.5% Private investors 6.5% 0.0% 0.0% Crowdfunding 1.3% MEDIA programme 1.6% 3.8% 9.5% Crédit d'impôt recherche (CIR) 0.9% MEDIA programme 0.2% Crédit d'impôt recherche (CIR) 0.0% 3.8% 4.8% Total 100.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 based on studio age FigureFinancing 35 : Financing based on studio age Figure 35: Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Figure 34 : Breakdown of types of financing used in production budgets (development studios) Figure 34: Breakdown of types of financing used in production budgets (development studios) Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Programme MEDIA Crédit d'impôt recherche (CIR) Financement participatif (crowdfunding) Crédit d'impôt jeu vidéo (CIJV) Aides régionales Emprunt bancaire Investisseurs privés Financement client (autre qu'un éditeur) Fonds d'aide au jeu vidéo (FAJV) Editeurs Autofinancement 0.2% 0.9% 1.3% 1.5% 2.6% 3.0% 4.6% 5.0% 7.9% 13.5% Entre 5 et 10 ans Plus de 10 ans 59.5% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% The older studios (over 10 years old) are those that work the most with publishers (61.9%). And use of Source: 2015 Annual survey ofstudios the French Industry - SNJV/IDATE the CIJV increases with age. 14.5% of youngerVideo than 5 Game years old use the CIJV, while this figure rises to 28.6% for studios older than 10. September 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Table 39: Moins de 5 ans Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Financing based on studio age The older studios (over 10 years old)Between are 5those thatOverwork Under 5 and 10 10 Self-financed 91.9% the most with publishers (61.9%). And92.3% use of the85.7%CIJV Fonds d'aide au jeu vidéo (FAJV) 30.8% increases with age. 14.5% of46.8% studios younger than 552.4% years Publishers 16.1% 23.1% 61.9% Regional aid 19.4% 19.2% 19.0% old use the CIJV, while this figure rises to 28.6% for studios Crédit d'impôt jeu vidéo (CIJV) 14.5% 23.1% 28.6% Bank loan than 10. 16.1% 11.5% 14.3% older How do you finance your productions? Type of funding Crowdfunding Customer financing (other than a publisher) 14.5% 8.1% 7.7% 15.4% 9.5% 9.5% Private investors 6.5% 0.0% 0.0% MEDIA programme Crédit d'impôt recherche (CIR) 1.6% 0.0% 3.8% 3.8% 9.5% 4.8% Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 www.idate.org © SNJV/IDATE 2015 www.idate.org © SNJV/IDATE 2015 32 27 33 2. Employment in the French video game industry Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 2.1. Great disparity in company size and number of jobs Figure 37 : Average FTE jobs per company based on age (all companies) Average FTE jobs per company based on age (all companies) Number of respondents: 141 companies (all activities), response rate: 96.57% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 37: 65.6 1. Average number of full-time equivalent jobs rose between 2014 and 2015 En 2014 Most of the video game companies are SMEs, with an average of 22.9 full-time equivalent (FTE) jobs in France in 2015. This is an increase of 1 FTE since 2014. There Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 are, however, significant differences since the median is 6, which means half of the companies have 6 FTEs or fewer. Also of note is that only 7 companies have more than 90 FTEs. 2. Employment in the French video game Table 40 : Average FTE jobs per company in 2014 industry and 2015 (all companies) 2.1. Great disparity in company size and number of jobs Average FTE jobs per company Year 2.1.1. Average number of full-time equivalent jobs rose between 2014 and 2015 Most of the video game companies are SMEs, with an average of 22.9 full-time equivalent (FTE) jobs in France in 2015. This is an increase of 1 FTE since 2014. There are, however, significant differences In 2014: 21.9 since the median is 6, which means half of the companies have 6 FTEs or fewer. In 2015, atis mid-year Also of note that only 7 companies have more than 90 FTEs. 22.9 Table 40: 69.0 Survey carried out between 4 May and 1 July 2015 How many FTE jobs did your company have at the end of the year? Number rate: Year of respondents: 141 companies (all activities), response Average FTE jobs96.57% per company In 2014: Source: 2015 Annual survey of the French Video Game Industry -21.9 SNJV/IDATE In 2015, at mid-year 22.9 September 2015 Survey carried out between 4 May and 1 July 2015 Moins de 5 ans Figure 36 : Average FTE jobs per company in 2014 36: Average jobs per company in 2014 and 2015 (all companies) andFigure 2015 (all FTE companies) En 2015, à la mi-année 14.5 Entre 5 et 10 ans Plus de 10 ans Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 141 companies (all activities), response rate: 96.57% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Nearly 70% of the companies surveyed have fewer than 11 FTEs in 2015. Among those 5 to 10 years old, only 9.4% have more than 30 FTEs. So an intensive recruitment phase seems to happen when companies reach a certain September 2015 Number of respondents: 141 companies (all activities), response rate: 96.57% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 maturity. 48.4% of companies over 10 years old have more than 30 FTEs. of FTE jobs in 2015 based on company age (all companies) NearlyBreakdown 70% of the companies surveyed have fewer than 11 FTEs in 2015. those years only 9.4% Age/FTEs 1-5 FTEsAmong 6-10 FTEs 5 to 10 11-30 FTEs old, Over 30 FTEs Total Under 5 58.4% 24.7% 13.0% 3.9% 100.0% have more than 30 FTEs. So an intensive recruitment Between 5 and 10 43.8% 25.0% 21.9% 9.4% 100.0% Over 10 22.6% 16.1% reach 48.4% 100.0% phase seems12.9% to happen when companies a certain Overall total 45.0% 24.3% 15.7% 15.0% 100.0% maturity. 48.4% of1 Julycompanies over 10 years old have more Survey carried out between 4 May and 2015 Number of respondents: 140 companies (all activities), response rate: 95.89% than 30 FTEs. Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Table 42: Breakdown of FTE jobs in 2015 based on company age (all companies) Breakdown of FTE jobs in 2015 based on company age (all companies) 15.0% Table 42 : Breakdown of FTE jobs in 2015 Entrebased 1 et 5 ETP on Entre 6 et 10 ETP company15.7% age (all companies) 45.0% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Number of respondents: 141 companies (all activities), response rate: 96.57% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 37: Number of respondents: 141 companies (all activities), response rate: 96.57% 8.0 7.0 Figure 38: Average FTE jobs per company in 2014 and 2015 (all companies) 13.4 Age/FTEs Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 1-5 FTEs 6-10 FTEs Entre 11 et 30 ETP OverPlus de 30 ETP 11-30 30 Total FTEs 65.6 69.0 FTEs Average FTE jobs per company based on age (all companies) 24.3% Survey carried out between 5 May and 1 July 2014 Number of respondents: 140 companies (all activities), response rate: 95.89% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Under 5 22.9 21.9 58.4% 24.7% 13.0% 13.4 43.8% En 2015, à la mi-année 14.5 8.0 7.0 Collective bargaining agreements Between 5 andMoins 10 de 5 ans Table 43: 25.0% 21.9% Which collective bargaining agreement covers your company? 2014 InEn2014 Toys andofgames Number respondents: 141 companies (all activities), response rate: 96.57% Over 10 Number of respondents: 141 companies4 (allMay activities), response rate:2015 96.57% Survey carried out between and 1 July Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 141 companies (all activities), response rate: 96.57% While2015 companies 5 years old or younger 8 FTEVideo jobs onGame averageIndustry in 2015, those over 10 years old Source: Annual survey of the have French - SNJV/IDATE have 69. In addition, the number of FTEs increases exponentially with age. So growth is 1 FTE for September companies2015 younger than 5 years old and 3.7 FTEs for those older than 10. Average FTE jobs per company based on age (all companies) Average FTE jobs based on age While companies 5 years old or younger have 8 FTE jobs Under 5 Between 5 and 10 Over 10 Overall average on Inaverage in 2015, those over 10 2014: 7.0 13.4 years old 65.3 have 69. 21.9 In In 2015, at mid-year 8.0 14.5 69.0 22.9 addition, the number of FTEs increases exponentially with Survey carried out between 4 May and 1 July 2015 age. So growth is 1 FTE for companies younger than 5 years old and 3.7 FTEs for those older than 10. 34 Table 41 : Average FTE jobs per company based on age (all companies) Under 5 Between 5 and 10 Over 10 Overall average In 2014 7.0 13.4 65.3 21.9 In 2015, at mid-year 8.0 14.5 69.0 22.9 9.4% Plus de 10 ans 12.9% 22.6% 16.1% 48.4% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Nearly 70% of the companies www.idate.org © SNJV/IDATE 2015 100.0% 2015 63.0% Survey carried out between 4 May and 1 July 2015 2015, at à lamid-year mi-année In En 2015, www.idate.org © SNJV/IDATE 2015 Entre 5 et 10 ans CBA Syntec Survey carried out between 4 May and 1 July 2015 Table 41: 3.9%En 2014100.0% A large majority of companies are affiliated with Syntec (63%). 8.2% 100.0% surveyed have fewer than 11 FTEs in 2015. Among those 5 to 10 years old, only 9.4% 35 have more than 30 FTEs. So an intensive recruitment phase seems to happen when companies reach a certain maturity. 48.4% of companies over 10 years old have more than 30 FTEs. Overall total Survey Table 42: 45.0% 24.3% 15.7% 15.0% 100.0% carried out of between and 1onJuly 2015age (all companies) Breakdown FTE jobs 4 in May 2015 based company Breakdown jobs in 2015 based company age (allactivities), companies) response Number of ofFTE respondents: 140 on companies (all rate: 95.89% 1-5 FTEs FTEs Video Game 11-30Industry FTEs 30 FTEs Total 2015 Annual survey of the6-10 French -Over SNJV/IDATE 24.7% 13.0% 3.9% 100.0% September 2015 58.4% Age/FTEs Source: Under 5 Between 5 and 10 Over 10 43.8% 12.9% 25.0% 22.6% 21.9% 16.1% 9.4% 48.4% 100.0% 100.0% Overall total 45.0% 24.3% 15.7% 15.0% 100.0% Survey carried out between 4 May and 1 July 2015 Figure 38 : Breakdown of FTE jobs in 2015 based on company age (all companies) Figure 38: Breakdown of FTE jobs in 2015 based on company age (all companies) Number of respondents: 140 companies (all activities), response rate: 95.89% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 15.0% Entre 1 et 5 ETP 1-5 FTEs 15.7% 45.0% 24.3% Entre 6 et 10 ETP 6-10 FTEs Entre et 30 ETP 11-3011 FTEs Plus ETP Over de 30 30 FTEs Survey carried out between 5 May and 1 July 2014 Survey carried out between 5 May and 1 July 2014 Number of respondents: 140 companies (all activities), response rate: 95.89% 2015 Annualare survey the French ASource: large majority of companies affiliatedof with Syntec (63%).Video Game Industry - SNJV/IDATE September 2015 Number of respondents: 140 companies (all activities), response rate: 95.89% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 141 companies (all activities), response rate: 96.57% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Table 43: Collective bargaining agreements Which collective bargaining agreement covers your company? CBA Syntec 2015 63.0% Toys and games 8.2% www.idate.org © SNJV/IDATE 2015 28 Annual Survey of the French Video Game Industry - 2015 35 A large majority of companies are affiliated with Syntec (63%). Table 43 : Collective bargaining agreements CBA 2015 Syntec 63.0% Toys and games 8.2% No affiliation 5.5% Technical research offices (JO 3018) 4.1% Audiovisual 4.1% Do not know 2.7% Training organisation (IDCC1516) 2.1% Other* 2.1% NR (workers, employees) 1.4% Wholesale 1.4% Animation 1.4% Commerce and audiovisual services (IDCC1686) 1.4% Computer programming 1.4% Commercials 1.4% Total 100.0% 3.Employment in development studios is growing in 2015 Development studios had 21.8 FTE jobs on average in 2014. Recruitment seems to have been needed in the first half of 2015 as there was an increase of 1.5 FTE jobs over the period. This trend was observed regardless of company age (Table 46). Table 45 : Average FTE jobs per company in 2014 and 2015 (development studios) Table 44 : Average number of FTE jobs (publishers Animation 1.4% Commerce and audiovisual services (IDCC1686) 1.4% and distributors) Computer programming 1.4% 1.4% 1.4% Average FTE jobs per company 100.0% (publishers and distributors) Number of respondents: 146 companies (all activities), response rate: 100% In 2014 23.3 Number of respondents: 105 companies (development studios), response rate: Table 45: Average FTE jobs per company in 2014 and 2015 (development studios) 96.33% How many FTE jobs did your company have at the end of the year? Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Year Average FTE jobs per company (development studios) September 2015 In 2014: 21.8 In 2015, at mid-year: 23.3 Survey carried out between 4 May and 1 July 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Figure 40 : Average FTE jobs per company in 2014 Figure 40: Average FTE jobs per company in 2014 and 2015 (development studios) and 2015 (development studios) Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 23.3 4.1% Wholesale Survey carried out between 4 May and 1 July 2015 In 2015, at mid-year 21.8 The average number of FTE jobs among publishers and Audiovisual 4.1% Do not know 2.7% distributors has been stable between 2014 and 2015, Training organisation (IDCC1516) 2.1% Other* 2.1% remaining at 23. NR (workers, employees) 1.4% Year * Press, music publishing, distance selling 21.8 Development studios had 21.8 FTE jobs on average in 2014. Recruitment seems to have been needed in the first half of 2015 as there was an increase of 1.5 FTE jobs over the period. Survey carried out between 4 May and 1 July 2015 This trend was observed regardless of company age (Table 46). Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 TOTAL In 2014 2.1.3. Employment in development studios is growing in 2015 2. Number of full-time equivalent jobs among Which collective bargaining agreement covers your company? publishers, distributors No affiliation 5.5% Commercials Average FTE jobs per company (development studios) Year Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 * Press, music publishing, distance selling Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Technical research offices (JO 3018) Number of respondents: 10 companies (publishers and distributors), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 23.2 En2014 2014 In Survey carried out between 4 May and 1 July 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Number of respondents: 105 companies (development studios), response rate: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 96.33% Table 46: Average FTE jobs per company based on age in 2014 and 2015 (development studios) Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Company age and FTE jobs in 2014 and 2015 September 2015 Under 5 Between 5 and 10 Over 10 Overall average In 2014: 8.0 11.2 73.7 21.8 In 2015, at mid-year 9.1 12.5 79.4 23.3 Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% In 2015, at mid-year 2.1.2. Number of full-time equivalent jobs 23.1 among publishers, distributors Table 46 : Average FTE jobs per company based on Figure 41: jobs per2015 company based on age in 2014 and 2015 studios) (development studios) age in Average 2014FTEand (development Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 The average number of FTE jobs among publishers and distributors has been stable between 2014 and 2015, remaining 23. between 4 May and 1 July 2015 Survey carriedat out Number respondents: 10jobs companies (publishers Table 44: ofAverage number of FTE (publishers and distributors) and distributors), response rate: 100% How many FTE jobs did your company have at the end of the year? Year Average FTE jobs Game per company (publishers and distributors) Source: 2015 Annual survey of the French Video Industry - SNJV/IDATE In 2014: 23.2 September 2015 In 2015, at mid-year: En 2015,estimate à mi-année 2015 Survey carried out between 4 May and 1 July 2015 79.4 Company age and FTE jobs in74.2 2014 and 2015 8.0 23.1 Figure 39 : Average FTE jobs in 2014 and 2015 (publishers and distributors) Survey carried out between 4 May and 1 July 2015 Number of respondents: 10 companies (publishers and distributors), response rate: 100% 9.1 Moins de 5 ans Under 11.25 12.5 Between 5 and 10 Entre 5 et 10 ans Over 10 Plus de 10 ans In 2014: 8.0 11.2 73.7 Number of respondents: 105 companies (development studios), response rate: 96.33% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 Figure 39: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Average FTE jobs in 2014 and 2015 (publishers and distributors) 23.2 In 2015, at mid-year 23.1 www.idate.org © SNJV/IDATE 2015 In En2014 2014 2015 En 2015, estimate à la mi-année Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 10 companies (publishers and distributors), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 9.1 12.5 79.4 En 2014 En 2015, à mi-année Overall average 21.8 23.3 37 Survey carried out between 4 May and 1 July 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 29 Table 46: Average FTE jobs per company based on age in 2014 and 2015 (development studios) Studio age and FTE jobs in 2015 Company age and FTE jobs in 2014 and 2015 In 2014: Under 5 8.0 Between 5 and 10 11.2 Over 10 73.7 Overall average 21.8 9.1 12.5 79.4 23.3 Age / FTE category Under 5 1-5 FTEs 51.7% 6-10 FTEs 30.0% 11-30 FTEs 13.3% Over 30 FTEs Overall total 5.0% 100.0% Survey carried out between 4 May and 1 July 2015 Between 5 and 10 Over 10 44.0% 5.0% 24.0% 20.0% 24.0% 20.0% 8.0% 55.0% 100.0% 100.0% Number of respondents: 105 companies (development studios), response rate: 96.33% Overall total 41.0% 26.7% 17.1% 15.2% 100.0% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 In 2015, at mid-year Figure 41 : Average FTE jobs per company based on Figure in 41: 2014 Average FTE jobs per company based on age in 2014 and 2015 (development studios) age and 2015 (development studios) 74.2 8.0 11.2 9.1 Moins de 5 ans Number of respondents: 105 companies (development studios), response rate: 96.33% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 fewer) Full-time equivalent jobs in studios with fewer than 100 employees 79.4 En 2014 En 2015, à mi-année 12.5 Entre 5 et 10 ans Table 48 : Average FTE jobs per company (development studios) (excluding studios with 100 FTE jobs or Average FTE jobs per company (development studios) Our sample consists of 96% of studios with fewer than 100 employees. However, the average number of FTEs across all French development studios is strongly skewed by the number of jobs in companies with more than 100 employees. The average number of FTEs almost doubles if we add the larger French development studios. To reflect the real situation in the vast majority of development companies, we need to temporarily alter the sample to include only development studios with fewer than 100 employees. In 2013 Plus de 10 ans Survey carried out between 4 May and 1 July 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Survey carried out between 4Game MayIndustry and 1 July 2015 Source: 2015 Barometer of the French Video - SNJV/IDATE - September 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE www.idate.org © SNJV/IDATE 2015 37 September 2015 The breakdown of FTE jobs by age group among development studios reveals the same observation as that found with all companies. 10.8 These studios had an average of 11.6 FTE jobs in 2014, compared with 12.7 by mid-2015, an increase of 1.1 FTE jobs. A similar change occurred between 2013 and 2014, though slightly larger. However, at the halfway point in 2014, there were 12.4 FTEs. With 11.6 FTE jobs in 2014, there was therefore a decrease of 0.8 FTEs during the second half of 2014. In 2014, at mid-year 12.4 In 2014 11.6 In 2015,Average at mid-year 12.7 FTE jobs per company (development studios) Table 48: (excluding studios with 100 FTE jobs or fewer) How many FTE jobs did company4have at the the 2015 year? Survey carried outyour between May andend 1 of July FTE jobs per company (development studios) Number of respondents: 101 companiesAverage (development studios with fewer than 10.8 rate: 96.19% 12.4 2015 Annual survey of the French Video Game Industry - SNJV/IDATE InSource: 2014: 11.6 InSeptember 2015, at mid-year 12.7 2015 In 2013: 100 FTEs), response In 2014, at mid-year Survey carried out between 4 May and 1 July 2015 Figure 42 : Average FTE jobs per company (development (excluding studios with 100 FTE jobs or Figure 42: Average FTE jobsstudios) per company (development studios) Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Table 47 : Breakdown of FTE jobs in 2015 based on age (development studios) (excluding studios with 100 FTE jobs or fewer) fewer) 12.7 12.4 Studio age and FTE jobs in 2015 11.6 10.8 Age / FTE category 1-5 FTEs 6-10 FTEs 11-30 FTEs Over 30 FTEs Overall total En 2013 En 2014, à mi-année En 2014 En 2015, à mi-année Survey carried out between 4 May and 1 July 2015 Under 5 51.7% 30.0% 13.3% 5.0% 100.0% Between 5 and 10 44.0% 24.0% 24.0% 8.0% 100.0% Over 10 5.0% 20.0% 20.0% 55.0% 100.0% Overall total 41.0% 26.7% 17.1% 15.2% 100.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 20152015 www.idate.org © SNJV/IDATE 38 Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 105 companies (development studios), response rate: 96.33% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Full-time equivalent jobs in studios with fewer than 100 employees Our sample consists of 96% of studios with fewer than 100 employees. However, the average number of FTEs across all French development studios is strongly skewed by the number of jobs in companies with more than 100 employees. The average number of FTEs almost doubles if we add the larger French development studios. To reflect the real situation in the vast majority of development companies, we need to temporarily alter the sample to include only development studios with fewer than 100 employees. These studios had an average of 11.6 FTE jobs in 2014, compared with 12.7 by mid-2015, an increase of 1.1 FTE jobs. A similar change occurred between 2013 and 2014, though slightly larger. However, at the halfway point in 2014, there were 12.4 FTEs. With 11.6 FTE jobs in 2014, there was therefore a decrease of 0.8 FTEs during the second half of 2014. The number of FTE jobs increases along with increasing age of the company. While the younger studios have 9.1 FTEs on average, the older studios have an average of 26.3 FTEs. Table 49 : Average FTE jobs per company based on age (development studios) (excluding studios with 100 FTE jobs or fewer) Studio age and FTE jobs Ancienneté/ Classes d’ETP Under 5 Between 5 and 10 Over 10 Overall average In 2014, at mid-year 8.2 10.4 29.1 12.4 In 2014: 8.0 11.2 24.9 11.6 26.3 12.7 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 In 2015, at mid-year 9.1 12.5 The number of FTE jobs increases along with increasing age of the company. While the younger studios have 9.1 FTEs on average, the older studios have an average of 26.3 FTEs. Table 49: Average FTE jobs per company based on age (development studios) (excludingout studios with 100 FTE 4 jobs or fewer) Survey carried between May and 1 July 2015 Studio age and FTE jobs Number of respondents: 101 companies (development studios with fewer than Under 5 Between 5 and Over 10 Overall average 100 FTEs), response rate: 96.19% 10 In 2014, at mid-year 8.2 10.4 29.1 12.4 Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE In 2014: 8.0 11.2 24.9 11.6 September 2015 In 2015, at mid-year 9.1 12.5 26.3 12.7 Survey carried out between 4 May and 1 July 2015 Figure 43 : Average FTE jobs per company based on age (development studios) Figure 43: Average FTE jobs per company based on age (development studios) Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 29.1 24.9 26.3 En 2014, à mi-année 9.1 12.5 10.4 11.2 Moins de 5 ans Entre 5 et 10 ans 8.2 8.0 En 2014 En 2015, à mi-année Plus de 10 ans Survey carried out between 4 May and 1 July 2015 Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 2.2. Long-term and skilled jobs 30 Annual Survey of the French Video Game Industry - 2015 2.2.1. A talent industry dominated by long-term and highly skilled jobs Skilled labour from information technology occupations and the creative industry make up the bulk of the 4 workforce in companies of this sector. So-called technical jobs account for 29.1% of the workforce, 5 followed by graphical jobs (24.4%). There is an increased proportion of jobs related to design, up 2.8 points. that use of freelancers and external service providers has slightly increased. Number of respondents: 101 companies (development studios with fewer than 100 FTEs), response rate: 96.19% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Table 51 : Breakdown of workforce by type of contract (all companies) 2.2. Long-term and skilled jobs 1. A talent industry dominated by long-term and highly skilled jobs Skilled labour from information technology occupations and the creative industry make up the bulk of the workforce in companies of this sector. So-called technical1 jobs account for 29.1% of the workforce, followed by graphical jobs2 (24.4%). There is an increased proportion of jobs related to design, up 2.8 points. Table 50 : Breakdown of workforce by job category (all companies) Discipline 2015 2015 Technology 29.1% 29.1% Graphics 24.4% 24.4% Management 13.9% 13.9% Design 14.7% 14.7% Support 9.7% 9.7% Cross-disciplinary 8.1% 8.1% Total 100.0% 100.0% Barometer of the French Video Game Industry, 2nd Edition, 2015 Job category 2015 2014 Permanent 63.0% 70.4% Freelancers/contractors 14.7% 12.3% Temporary 12.4% 8.9% Trainees 5.4% 5.6% Occasional/casual 2.7% 1.0% Other* 1.2% 1.8% Self-employed person 0.6% 0.0% Interim 0.1% 0.0% Total 100.0% 100.0% * Managers, shareholders Survey carried out between 4 May and 1 July 2015 Number of respondents: 139 companies (all activities), response rate: 95.2% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 The workforce breakdown for studios is barely different from that of all companies in the sector. Contracts are also mostly permanent (59.2%).. Survey carried out between and 1 Julygroups: 2015 y your workforce, in terms of FTEs, for each 4ofMay the following Number of respondents: 129 companies (all activities), response rate: 88.3% 8.1% 9.7% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE 100.0% 100.0% September 2015 carried out between 4 May and 1 July 2015 Table 52 : Breakdown of workforce by type of contract (development studios) disciplinary L Figure 44 : Breakdown of workforce by job category (all companies) of respondents: 129 companies (all activities), response rate: 88.3% 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 44: Breakdown of workforce by job category (all companies) 8.1% 9.7% 29.1% Technologie Technology Image Graphics Management 14.7% Management Design Support Design 13.9% 24.4% Transverse carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 of respondents: 129 companies (all activities), response rate: 88.3% Number ofVideo respondents: 129- companies activities), 2015 Barometer of the French Game Industry SNJV/IDATE -(all September 2015 response rate: 88.3% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 y two-thirds of jobs are permanent, but temporary contracts are on the rise Job category 2015 2014 Permanent 59.2% 58.9% Freelancers/contractors 17.1% 18.0% Temporary 12.7% 12.6% Trainees 6.0% 6.0% Occasional/casual 3.2% 2.5% Other* 1.1% 1.2% Self-employed person 0.8% 0.8% Interim 0.1% 0.1% Total 100.0% 100.0% anent contracts still account for the large majority in the video game sector (63%) in 2015 despite a ase of 7.4 points from 2014. roportion of temporary contracts is on the rise (from 8.9% in 2014 to 12.4% in 2015) because of * Managers, shareholders t uncertainty in particular. At the same time, we can see that use of freelancers and external service Survey carried out between 4 May and 1 July 2015 contracts still account for the large majority in Number of respondents: 104 companies (development studios), response rate: ers has slightlyPermanent increased. 2. Nearly two-thirds of jobs are permanent, but temporary contracts are on the rise 95.41% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 the video game sector (63%) in 2015 despite a decrease of 7.4 points from 2014. 51: Breakdown by type of of contract (all companies) Theof workforce proportion temporary contracts is on the rise y the breakdown of your8.9% workforce the following (from in according 2014 toto 12.4% in categories: 2015) because of market tegory 2015 2014 uncertainty in particular. At the same time, we can see nent 63.0% 70.4% ncers/contractors 4 orary i.e. technical es ional/casual 14.7% 12.3% 12.4% 8.9% director, lead programmer, game engine programmer, gameplay programmer, specialised programmer (AI, tools, physics, etc.) 5.4% 5.6% 1.2% 1.8% 0.6% 0.1% 0.0% 0.0% 100.0% 100.0% i.e. artistic director, concept artist, lead graphic designer, 2D graphic designer, 3D modeller/texturer, animator, graphics specialist (lighting, motion capture, 2.7% 1.0% special effects, etc.) 5 mployed person m L gers, shareholders carried out between 4 May and 1 July 2015 of respondents: 139 companies (all activities), response rate: 95.2% 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 31 Other* Self-employed person 1.1% 0.8% Augmentation 1.2% 0.8% Interim 0.1% 0.1% TOTAL 100.0% 100.0% Maintien 49.3% 44.5% Baisse * Managers, shareholders Survey carried out between 4 May and 1 July 2015 Number of respondents: 104 companies (development studios), response rate: 95.41% Figure 45 : Breakdown of workforce by type of Breakdown of workforce by type ofstudios) contract (development studios) contract (development Figure 47 : Workforce change by 2016 (all companies) Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 146 companies (all activities), response rate: 100% Figure 45: Figure 47: Intérim 0.1% Travailleur Non Salarié (TNS) 0.8% Autre* 1.1% Intermittents Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Workforce change by 2016 (all companies) 56.4% 49.3% 37.2% 44.5% 3.2% Stagiaires 2014 6.0% CDD 6.4% 12.7% 17.1% Freelance/prestataires Augmentation 59.2% CDI Maintien 2015 6.2% Baisse Survey carried out between 4 May and 1 July 2015 * Managers, shareholders Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015studios), response rate: Number of respondents: 104 companies (development 95.41% 2.3. Encouraging futuresurvey prospects employment in Industry 2016 - SNJV/IDATE Source: 2015 Annual of thefor French Video Game September 2015 Video game players are looking to expand their teams with 49.3% of them wanting to hire between now * Managers, shareholders Survey carried out between 4 May and 1 July 2015 Number of respondents: 104 companies (development studios), response rate: 95.41% and 2016. However, this is a lower figure than in 2014 when 56.4% of them wanted to hire for 2015. The percentage of companies wanting to reduce their workforce has remained at 6%. This means the proportion of companies wanting to maintain a stable workforce in 2015 has increased from 2014 (44.5% compared with 37.2%). 2.3. Encouraging future prospects for employment in 2016 Table 53: Workforce change by 2016 (all companies) In your opinion, how will your workforce evolve by 2016? 2015 2014 Video game players are looking to49.3% expand their teams with Increased workforce 56.4% No change in of workforce 37.2% 2016. 49.3% them wanting to hire 44.5% between now and Decreased workforce 6.2% 6.4% However, this is a lower figure than in 2014 when100.0% 56.4% of TOTAL 100.0% Survey carried out between 4 May and 1 July 2015 them wanted to hire for 2015. Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 The percentage of companies wanting to reduce their workforce has remained at 6%. This means the proportion of companies wanting to maintain a stable workforce in 2015 has increased from 2014 (44.5% compared with 37.2%). Workforce change www.idate.org © SNJV/IDATE 2015 41 Table 53 : Workforce change by 2016 (all companies) Number of respondents: 146 companies (all activities), response rate: 100% Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Among the companies wanting to increase their workforce, nearly half of them are considering growth of Source: Annual survey the French fewer than 22015 FTEs and only 9.7% want toof hire more than 10.Video Game Industry - SNJV/IDATE - September 2015 Among the companies wanting to increase their workforce, Jobs created by 2016 nearly half of them are considering growth of fewer than 2 Number of new hires % FTEs and only 9.7% want to hire more than 10. Fewer than 1 1.4% Table 54: Number of FTE jobs created by 2016 Between 1 and 2 Between 3 and 5 45.8% 31.9% Between 6 and 10 11.1% More than 10 TOTAL 9.7% 100.0% Table 54 : Jobs created by 2016 Survey carried out between 4 May and 1 July 2015 Number of respondents: 72 companies (companies wanting to hire), response rate: 100% Number of FTE jobs created by 2016 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of new hires % Fewer than 1 1.4% Between 1 and 2 45.8% Between 3 and 5 31.9% Between 6 and 10 11.1% More than 10 9.7% Total 100.0% www.idate.org © SNJV/IDATE 2015 Workforce change 2015 2014 Increased workforce 49.3% 56.4% No change in workforce 44.5% 37.2% Decreased workforce 6.2% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 6.4% Total 100.0% 100.0% 42 Survey carried out between 4 May and 1 July 2015 Number of respondents: 72 companies (companies wanting to hire), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Figure 48: Figure 48 : Jobs created by 2016 Jobs created by 2016 9.7% 1.4% Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 45.8% meter of the French Video Game Industry, 2nd Edition, 2015 Figure 46 : Workforce change by 2016 (all companies) 31.9% Workforce change by 2016 (all companies) Fewer than 1Moins de 1 Entre Between 1 and 2 1 et 2 Entre Between 3 and 5 3 et 5 Between 6 and 106 et 10 Entre More than 10Plus de 10 11.1% Survey carried out between 4 May and 1 July 2015 6.2% Survey carried out between 4 May and 1 July 2015 49.3% 44.5% Number of respondents: 72 companies (companies wanting to hire), response rate: 100% Increased Number of respondents: 72 companies (companies wanting to hire), response rate: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 100% workforce Source: 2015 Annual survey thecompanies French Video Game is Industry - SNJV/IDATE Augmentation The number of potential jobs created based onof the surveyed 371 with only 30 job -losses in No change in September 2015. This is a largely positive2015 threshold on the recruiting front. Maintien workforce By extending this figure to all French video game companies, the market is expected to hire more than 800 new employees in 2015, from about 1000 in 2014. Decreased Baisse workforce The companies surveyed should thus create 2 additional positions on average by 2016 if we only take into account permanent and temporary contracts as well as job losses. This is a sign that the sector is growing despite a difficult economic environment and also a sign that video game companies are Survey carried out between 4 May and 1 July 2015 continuing d out between 4Number May and of 1 July 2015 respondents: 146 companies (all activities), response rate: 100% to invest in production in France. spondents: 146 Source: companies (all activities), response 100% Video Game Industry - SNJV/IDATE 2015 Annual survey of rate: the French September 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 49: Workforce change by 2016 (all companies) 56.4% Comparison between number of jobs created and number of job losses by 2016 193 49.3% 37.2% 44.5% 90 6.4% 6.2% Création 2014 Annual Survey of the French Video Game Industry - 2015 32 54 Départ 13 2015 6 30 2 8 4 0 0 1 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Other 0.0% TOTAL 0.3% 100.0% 100.0% Survey carried out between 4 May and 1 July 2015 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 respondents: 70 companies (companies wanting to hire), response rate: 97.2% Among Number these ofnew positions to be filled, specify the number of: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Freelancers/contractors 14.6% 10.9% The number of potential jobs created based on the Figure 50 : Job types created Jobs created by 2016 by 2016 Figure 50: Job types created by 2016 Trainees/apprentices 8.1% 12.5% 1.4% 9.7% is 371 with only 30 job losses in 2015. companies surveyed Occasional/casual 1.1% 1.7% Moins de 1 1.1% 8.1% This is a largely 11.1% positive threshold on the recruiting front. Permanent0.0% Entre 1 et 2 Interim 0.0% CDI By extending this figure to all French video game Entre 3 et 5 Temporary0.3% Other 0.0% 14.6% 45.8% CDD companies, the market is expected to hire more than Entre 6 et TOTAL 10800 100.0% 100.0% Freelancers/ Freelances/prestataires Plus de 10 31.9% in 2015, from about 1000 in 2014. new employees 52.0% Survey carried out between 4 May and 1 July 2015 contractors of respondents: 70 companies (companies wanting to hire), response rate: 97.2% Stagiaires/apprentis The companies surveyed should thus create Number 2 additional Trainees/ Survey carried out between 4 May and 1 July 2015 24.3% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 72 companies (companies wanting to hire), response rate: 100% Intermittents positions on average by 2016 if we only take into account apprentices Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 permanent and temporary contracts as well as job losses. Figure The number of potential jobs created based on the companies surveyed is 371 with only 30 job50: losses inJob types created by 2016 2015. This isis a largely positive threshold the recruitingis front. This a sign that theon sector growing despite a difficult Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 By extending this figure to all French video game companies, the market is expected to hire more than 1.1% game Number of respondents: 70wanting companies wanting to hire), response rate: 800economic new employees inenvironment 2015, from about 1000 and in 2014. also a sign that video Number of respondents: 70 companies (companies to hire), (companies response rate: 97.2% 8.1% 97.2%of the French Video Game Industry - SNJV/IDATE - September 2015 Source: 2015 Barometer companies are continuing to invest in production in France. The companies surveyed should thus create 2 additional positions on average by 2016 if we only take CDI Figure 48: Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE into account permanent and temporary contracts as well as job losses. This is a sign that the sector is 14.6% Payroll is due to natural 14% growing despite a difficult economic environment and also a sign that video game companies are growthSeptember 2015 business growth for 86% of the studios surveyed, while only CDD continuing to invest in production in France. change as a cyclical phenomenon. Figure 49 : Comparison between number of jobs Table 56: created and number of job losses by 2016 Figure 49: Comparison between number of jobs created and number of job losses by 2016 193 Freelances/prestata 52.0% Payroll growth is due to natural business growth for 86% Reasons for payroll growth Stagiaires/apprentis of the studios surveyed, while only 14% see the 2015 change as Reasons 24.3% Natural growtha cyclical phenomenon. 86% Intermittents Reasons for payroll growth Cyclical phenomenon 13 CDI 14% TOTAL 90 6 30 8 4 0 CDD Stagiaires / apprentis Freelances / prestataires Intermittents 0 100.0% Création Survey carried out between 4 May and 1 July 2015 Départ Number of respondents: 72 companies (companies wanting to hire), response rate: 100% 54 2 - see the Table 56 : Reasons for payroll growth Survey carried out between 4 May and 1 July 2015 1 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 70 companies (companies wanting to hire), response rate: 97.2% Autre Reasons payroll growth Figure 51: Reasons payroll growth Source: 2015 Barometer of the for French Video Game Industry for - SNJV/IDATE - September 2015 Survey carried 4 May and 1 July 2015 Survey carried out between out 4 Maybetween and 1 July 2015 Reasons business growth for 86% of the studios 2015surveyed, while only 14% se Number of respondents: 79 companies (companies wanting to hire and expecting job losses), response 97.5% Number of respondents: 79 companies (companies wanting torate: hire and expecting Payroll growth is due to natural14% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 job losses), response rate: 97.5% change as a cyclicalNatural phenomenon. growth 86% TheSource: majority of futureAnnual jobs created are likely to beFrench permanent (52%)Game and temporary contracts (24.3%). 2015 survey of the Video Industry - SNJV/IDATE September 2015 Croissance naturelle 56: Reasons for payroll growth Very few new hires will be on more unstable contractual arrangements: less than 24%Table will be freelancers, trainees or intermittent workers. The use of temporary contracts is on the rise because of the increased number of projects. The need to increase usage of temporary workers in the video Reasons game industry thus for payroll stems from the need to ensure certain productions in France survive. Cyclical phenomenon growth 86% 14% Phénomène conjoncturel The majority of future jobs created are likely to be Total 100.0% Reasons 2015 permanent (52%) and temporary contracts (24.3%). Table 55: Job types created by 2016 Natural growth 86% Survey carried out between 4 May and 1 July 2015 Among these new positions to be filled, specify the number of: Very few new hires will be on more unstable contractual Cyclical phenomenon Number of respondents: 72 companies (companies wanting to hire), response 14% rate: Contract types 2015 2014 Permanent 54.0% arrangements: less than 24%52.0% will be freelancers, trainees Survey carried out100% between 4 May and 1 July 2015 TOTAL 100.0% Temporary 24.3% 20.6% Number of respondents: 72 companies (companies wanting to hire), response rate: Game 100% Industry - SNJV/IDATE Source: 2015 survey of the French Video or intermittent workers. The use of temporarySurvey contracts is between carried out 4 May andAnnual 1 July 2015 September 2015 Number of respondents: 72 companies (companies wanting to hire), response rate: 100% on the rise because of the increased number of projects. www.idate.org © SNJV/IDATE 2015 Source: 2015 Barometer of the French Video Game Industry SNJV/IDATE September 2015 The need to increase usage of temporary workers in the video game industry thus stems from the need to ensure Figure 51: Reasons for payroll Figure 51 :growth Reasons for payroll growth certain productions in France survive. www.idate.org © SNJV/IDATE 2015 43 44 14% Table 55 : Job types created by 2016 Contract types 2015 2014 Permanent 52.0% 54.0% Temporary 24.3% 20.6% Freelancers/contractors 14.6% Trainees/apprentices 8.1% Occasional/casual 1.1% 1.7% Interim 0.0% 0.0% Other 0.0% 0.3% Total 100.0% 100.0% 86% Natural growth Croissance naturelle Cyclical Phénomène conjonctu phenomenon Survey carried out between 4 May and 1 July 2015 Number of respondents: 72 companies (companies wanting to hire), response rate: 100% Number of respondents: 72 companies (companies wanting to hire), response rate: 100% 12.5% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 10.9% Survey carried out between 4 May and 1 July 2015 www.idate.org © SNJV/IDATE 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 70 companies (companies wanting to hire), response rate: 97.2% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 33 3. The economic and financial situation of French video game companies 3.1. Companies growing despite economic fragility Table 58 : Average turnover based on age (all companies) 1. Turnovers of companies surveyed continue to show strong growth in 2015 Year Under 5 Between 5 and 10 Over 10 Overall average The average turnover reported by the companies surveyed was 3.8 million EUR in 2014. It increased by 11.1% in 2015, reaching 4.3 million EUR. The median is 300,000 EUR and demonstrates a strong disparity between small and large companies. In 2014: €491,872 €1,799,709 €12,599,809 €3,805,971 2015 estimate €723,310 €2,349,000 €13,301,972 €4,230,152 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 3. The economic and financial situation of Table 57 : Average turnover (all companies) French video game companies Year Average In 2014: €3,805,971 3.1. Companies growing despite economic fragility 3.1.1. Turnovers of companies surveyed continue to show strong growth in 2015 2015 estimate €4,230,152 The average turnover reported by the companies surveyed was 3.8 million EUR in 2014. It increased by 11.1% in 2015, reaching 4.3 million EUR. The median is 300,000 EUR and demonstrates a strong disparity between small and large companies. Survey carried out between 4 May and 1 July 2015 Average turnover (all companies) 117 companies (all activities), response rate: 80.13% Source: 2015 Annual survey of the French Video GameAverage Industry - SNJV/IDATE Year In 2014: €3,805,971 September 2015 Table 57: Number respondents: Specify yourof turnover 2015 estimate €4,230,152 Figure 52 : Average turnover (all companies) (in millions of EUR) Survey carried out between 4 May and 1 July 2015 Number of respondents: 117 companies (all activities), response rate: 80.13% Survey carried out between 4 May and 1 July 2015 Number of respondents: 117 companies (all activities), response rate: 80.13% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Looking at accounting results, 63.1% of the companies surveyed ended 2014 with a balanced account or with a surplus. Although certainly a success, this percentage is still lower than in 2013 (-4.8 points). This decrease is mainly due to a decrease in the number of companies ending the year with a surplus, which went from 38.4% in 2013 to 33.6% in 2014. The deficit rate has therefore increased, a sign that there is greater fragility among companies. Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 52: Average turnover (all companies) (in millions of EUR) Table 59 : Accounting situation at end of 2014 based on age (all companies) 4,23 3,81 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Age / 2014 Deficit Balanced Overall Surplus year total account or Looking at accountingfiscal results, 63.1% of the companies surveyed ended 2014 with a balanced 2014 Estimation 2015 InEn2014 2015 estimate with a surplus. Although certainly a success, this percentage is still lower than in 2013 (-4.8 points). This Survey carried out between 4 May and 1 July 2015 decrease is mainly due to a decrease in the number of companies ending the year with a surplus, which Number of respondents: (all activities), 80.13% Survey carried 117 outcompanies between 4 Mayresponse and 1rate: July 2015 Under 5 30.9% 33.3% 35.8% 100.0% went80.13% from 38.4% in 2013 to 33.6% in 2014. The deficit rate has therefore increased, a sign that there is Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 117 companies (all activities), response rate: greater fragility among companies. Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE This significant growth in turnover is particularly strong in companies under 5 years old: they predict an increase of more than 45% between 2014 and 2015. Regardless of company age, we see turnover September 2015 Table 59: Accounting growing for all companies. Between 5 48.5% 24.2% 27.3% situation at end of 2014 based on age (all companies) and 10 End of 2014 accounting situation based on company age particularly strong Age / 2014 fiscal year Deficit Average turnover based on age (all This significant growth incompanies) turnover is in companies under 5 years old: they predict increase Under 5 average Over 10 an Overall In 2014: €491,872 €1,799,709 €12,599,809 €3,805,971 Between 5 andof 10 of more than 45% between 2014 and 2015. Regardless 2015 estimate €723,310 €2,349,000 €13,301,972 €4,230,152 Over 10 Survey carried out between 4 May and 1 see July 2015turnover growing for all companies. company age, we Table 58: Average turnover of companies surveyed based on age Year Under 5 Between 5 and 10 Number of respondents: 117 companies (all activities), response rate: 80.13% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Balanced Surplus 33.3% 35.8% 48.5% 24.2% 33.6% 25.0% 27.3% 100.0% 34.4%100.0%100.0% 37.0% 29.5% 33.6% Over 10 40.6%30.9%25.0% Overall total 37.0%40.6%29.5% Overall total 100.0% 34.4% Survey out between 4 May and 1 July 2015 Survey carried out between 4 May carried and 1 July 2015 Overall total 100.0%100.0% 100.0% Number of respondents: 146 companies (all activities), response rate: 100% Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual the French- September Video Game Source: 2015 Barometer of the French Video Game survey Industry of - SNJV/IDATE 2015Industry - SNJV/IDATE - September 2015 www.idate.org © SNJV/IDATE 2015 46 Figure 53: Figure 53 : Accounting situation at end of 2014 (all companies) Accounting situation at end of 2014 (all companies) 33.6% En déficit Deficit A l'équilibre Balanced En excédent Surplus 37.0% 29.5% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Accounting situation at end of 2014 based on age (all companies) Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 54: 48.5% 40.6% 30.9% 34 35.8% 33.3% 24.2% 25.0% 27.3% 34.4% Moins de 5 ans Annual Survey of the French Video Game IndustryEntre - 2015 5 et 10 ans Plus de 10 ans 2014 Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 En déficit A l'équilibre En excédent Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Figure 53: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Accounting situation at end of 2014 (all companies) 33.6% 3.1.2. Turnovers of studios surveyed show strong growth in 2015 En déficit 37.0% The turnover of the development studios surveyed are also indicating a significant increase between 2014 and 2015. The increase is expected to be 22.4%, amounting to over 2 million EUR on average. A l'équilibre En excédent Table 61: Year Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 56 : Turnover growth between 2014 and 2015 Figure 56: Turnover growthstudios) between 2014 and(in 2015 millions (development studios) (in millions of EUR) (development of EUR) Number of respondents: 88 companies (development studios), response rate: 80.7% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 48.5% 40.6% 35.8% 33.3% 27.3% 24.2% 25.0% Average In 2014: €1,676,247 80.7% - Source: 2015 Annual survey of the French Video Game Industry - SNJV/ 2015 estimate €2,052,305 IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 Figure 54 : Accounting situation at end of 2014 based on ageAccounting (all companies) Figure 54: situation at end of 2014 based on age (all companies) Number of respondents: 146 companies (all activities), response rate: 100% 30.9% Average turnover growth between 2014 and 2015 (development studios) Specify your turnover for the period 29.5% 34.4% 2,05 1,68 Moins de 5 ans Entre 5 et 10 ans Plus de 10 ans En déficit A l'équilibre 2014 InEn2014 En excédent Estimation 2015 2015 estimate Survey carried out between 4 May and 1 July 2015 Number of respondents: 88 companies (development studios), 80.7% Survey carried out between 4 May andresponse 1 Julyrate: 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 88 companies (development studios), response rate: In 2014 the average turnover for development studios under 5 years old was just over 454,000 EUR, and 80.7% continues to grow along with age, up to 5.9 million EUR for companies older than 10. Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE The turnover for studios between 5 and 10 years old could even double according to estimates from their September 2015 performance which accurately reflects the dynamics of the industry. directors. Remarkable Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Table 60: Accounting September 2015 situation at end of 2013 based on age (all companies) Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% End of 2013 accounting situation based on company age Age / 2013 fiscal year Deficit Balanced Surplus Overall Table 60 : Accounting situation at end of 2013 based ontotal 29.6% 39.5% 30.9% 100.0% In 2014 the average turnover for development studios age (all companies) Between 5 and 10 33.3% 18.2% 48.5% 100.0% Under 5 under 5 years old was just over 454,000 EUR, and continues to grow along with age, up to 5.9 million EUR for companies older than 10. The turnover for studios between 5 and 10 years old could even double according to estimates from their directors. Remarkable performance which accurately reflects the dynamics of the industry. www.idate.org © SNJV/IDATE 2015 Age / 2013 www.idate.org © SNJV/IDATE 2015 Deficit fiscal year Balanced Surplus Overall total Under 5 29.6% 39.5% 30.9% 100.0% Between 5 and 10 33.3% 18.2% 48.5% 100.0% Over 10 37.5% 15.6% 46.9% 100.0% Overall total 32.2% 29.5% 38.4% 100.0% 47 48 Table 62 : Average turnover based on age (development studios) Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the 37.5% French Video Game - SNJV/IDATE Over 10 15.6% Industry 46.9% 100.0% Overall total 32.2% 29.5% 38.4% 100.0% September 2015 End of 2013 accounting situation based on company age Survey carried out between 4 May and 1 July 2015 Figure 55 : Financial situation at end of 2013 and 2014 (all companies) Figure 55: Financial situation at end of 2013 and 2014 (all companies) Number of respondents: 146 companies (all activities), response rate: 100% Year Under 5 Between 5 and 10 Over 10 Overall average In 2014: €454,231 €659,626 €5,887,077 €1,676,247 2015 estimate €690,492 €1,246,286 €6,383,537 €2,052,305 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 32.2% 37.0% 38.4% 29.5% 29.5% 33.6% Survey carried out between 4 May and 1 July 2015 Number of respondents: 88 companies (development studios), response rate: 80.7% Table 62: Average turnover based on age (development studios) Turnover of development studios based on Source: 2015 Annual survey ofage the French Video Game Industry - SNJV/IDATE Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 2013 2014 En déficit A l'équilibre En excédent Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Industry - SNJV/IDATE - September response 2015 Number of respondents: 146Game companies (all activities), rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Number of respondents: 146 companies (all activities), response rate: 100% 3.1.2. Turnovers of studios surveyed show strong growth in 2015 2. Turnovers of studios surveyed show strong growth in 2015 Table 61: Average turnover growth between 2014 and 2015 (development studios) The turnover of the development studios surveyed are also indicating a significant increase between 2014 and 2015. The increase is expected to be 22.4%, amounting to over 2 million EUR on average. The turnover of the development studiosAverage surveyed are also €1,676,247 indicating a significant increase between 2014 and 2015. 2015 estimate €2,052,305 Thecarried increase isandexpected to be 22.4%, amounting to over 2 Survey out between 4 May 1 July 2015 Number of respondents: 88 companies (development studios), response rate: 80.7% million EURof theon average. Source: 2015 Barometer French Video Game Industry - SNJV/IDATE - September 2015 Year InSeptember 2014: 2015 2015 estimate Under 5 €454,231 Between 5 and 10 €659,626 Over 10 €5,887,077 Overall average €1,676,247 €690,492 €1,246,286 €6,383,537 €2,052,305 Figure 57 : Turnover growth between 2014 and 2015 based on age (development studios) (in millions of Figure 57: growth between 2014 and 2015 based on age (development studios) (in millions of EUR) Turnover EUR) Survey carried out between 4 May and 1 July 2015 Number of respondents: 88 companies (development studios), response rate: 80.7% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 5,89 6,38 Specify your turnover for the period Year In 2014: In 2014: 2015 estimate Survey carried out between 4 May and 1 July 2015 Moins de 5 ans 1,25 Entre 5 et 10 ans Plus de 10 ans Survey carried out between 4 May and 1 July 2015 Number of respondents: 88 companies (development studios), response rate: Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 80.7% The financial situation of studios at the 2014 showed 36.7% of them -were in deficit. A Source: 2015 Annual survey of end the ofFrench Video that Game Industry SNJV/IDATE relatively similar situation was observed in 2013 (31.2%), although slightly lower. September 2015 Only 30% reported a surplus (37.6% in 2013). Table 63: €1,676,247 Financial situation at end of 2013 and 2014 (development studios) The financial situation of studios at the end of 2014 showed Fiscal year Balanced Surplus Overall total that 36.7% of them wereDeficit in deficit. A relatively similar 2013 31.2% 31.2% 37.6% 100.0% 2014 33.0% 30.3% 100.0% situation was observed in 36.7% 2013 (31.2%), although slightly Survey carried out between 4 May and 1 July 2015 lower. Number of respondents: 109 companies (development studios), response rate: 100% End of fiscal year Estimation 2015 €2,052,305 Number of respondents: 88 companies (development studios), response rate: 80.7% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 In 2014 the average turnover for development studios under 5 years old was just over 454,000 EUR, and Number of respondents: 88to 5.9 companies studios), continues to grow along with age, up million EUR (development for companies older than 10. response rate: The turnover for studios between 5 and 10 years old could even double according to estimates from their directors. Remarkable performance which accurately reflects the dynamics of the industry. Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 58: 35 www.idate.org © SNJV/IDATE 2015 0,66 Number of respondents: 88 companies (development studios), response rate: 80.7% Average En 2014 0,69 Survey carried out between 4 May and 1 July 2015 Turnover growth betweenturnover 2014 and 2015 (development studios) (in millions of2014 EUR) Table 61 : Average growth between 2,05 and 2015 (development studios) 1,68 Figure 56: Year 0,45 En 2014 Estimation 2015 48 Financial situation at end of 2013 and 2014 (development studios) 31.2% 36.7% 31.2% 33.0% 37.6% 30.3% 2013 2014 Turnover of development studios based on age Year In 2014: Under 5 €454,231 Between 5 and 10 €659,626 Over 10 €5,887,077 Overall average €1,676,247 2015 estimate €690,492 €1,246,286 €6,383,537 €2,052,305 Survey carried out between 4 May and 1 July 2015 Number of respondents: 88 companies (development studios), response rate: 80.7% Table 63 : Financial situation at end of 2013 and 6,38 5,89 2014 (development studios) 0,69 0,45 2013 Moins de 5 ans 31.2% 100.0% Over 10 Overall total 33.3% 36.7% 33.3% 33.0% 33.3% 30.3% 100.0% 100.0% Figure 59 : Financial situation at end of 2014 based on age (development studios) Figure 59: Financial situation at end of 2014 based on age (development studios) Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Overall total 31.2% 37.6% Plus de 10 ans 100.0% 33.0% 30.3% 100.0% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number ofFinancial respondents: 109 companies (development studios), response rate: Table 63: situation at end of 2013 and 2014 (development studios) 100% End of fiscal year Source: 2015 Annual survey of the French Video Game - SNJV/IDATE Fiscal year Deficit BalancedIndustry Surplus Overall total 2013 31.2% 31.2% 37.6% 100.0% September 2015 36.7% 33.0% 30.3% 100.0% Figure 58 : Financial situation at end of 2013 and 2014 (development studios) Under 5 30.6% Age of company and end of 2013 fiscal year 37.6% 30.3% 2014 A l'équilibre 100.0% 29.0% Number of respondents: 109 companies (development studios), response rate: 100% 2013 En déficit 40.3% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Financial situation at end of 2013 and 2014 (development studios) 31.2% 33.0% En excédent Between 5 and 10 30.8% Table 65 : Financial situation at end23.1% of 201346.2% based100.0% on Over 10 33.3% 14.3% 52.4% 100.0% Overall total 31.2% 31.2% 37.6% 100.0% age (development studios) Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 31.2% A l'équilibre Survey between 4 May studios), and 1response July 2015 Number of carried respondents:out 109 companies (development rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 109 companies (development studios), response rate: 100% Table 65: Financial situation at end of 2013 based on age (development studios) Age of company end of 2013 fiscal of year Source: 2015and Annual survey the French Video Game Industry - SNJV/IDATE Age / 2013 fiscal year Deficit Balanced Surplus Overall total September 2015 Number of respondents: 109 companies (development studios), response rate: 100% 36.7% Entre 5 et 10 ans Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Figure 58: Moins de 5 ans Survey carried out between 4 May and 1 July 2015 The financial situation of studios at the end of 2014 showed that 36.7% of them were in deficit. A relatively similar situation was observed in 2013 (31.2%), although slightly lower. Survey carried between 4 May and 1 July 2015 Only 30% reportedout a surplus (37.6% in 2013). 2014 33.3% 32.3% Plus de 10 ans En déficit Number of respondents: 88 companies (development studios), response rate: 80.7% 36.7% 33.9% 30.8% 33.3% 23.1% Survey carried out between 4 May and 1 July 2015 2014 33.3% En 2014 Estimation 2015 Surplus Entre 5 et 10 ans Overall total 100.0% 23.1% 46.2% 1,25 Balanced 0,66 Surplus 32.3% 30.8% 33.9% End of fiscal year Deficit Balanced 33.9% 46.2% Number of respondents: 109 companies (development studios), response rate: 100% Turnover growth between 2014 and 2015 based on age (development studios) (in millions of EUR) Fiscal year Deficit 33.9% Between 5 and 10 Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Only 30% reported a surplus (37.6% in 2013). Figure 57: Age / 2014 fiscal year Under 5 En excédent Age / 2013 fiscal year Deficit Balanced Surplus Overall total Under 5 30.6% 40.3% 29.0% 100.0% Between 5 and 10 30.8% 23.1% 46.2% 100.0% Over 10 33.3% 14.3% 52.4% 100.0% Overall total 31.2% 31.2% 37.6% 100.0% www.idate.org © SNJV/IDATE 2015 Survey carried out between 4 May and 1 July 2015 Number ofcarried respondents: 109between companies (development studios), response rate: 100% Survey out 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 www.idate.org © SNJV/IDATE 2015 For the 2014 fiscal year, more studios in the 5 to 10 year age bracket posted a deficit. 46.2% were in this situation, compared with 33.9% for studios under 5 years old and 33.3% for studios over 10 years old. Studios over 10 years old appear to have experienced a downturn in 2014. Only 33.3% reported a surplus at the end of 2014, compared with 52.2% at the end of 2013). However, the deficit rate of these studios has not moved (33.3%), so more are breaking even (+19 points). Table 64 : Financial situation at end of 2014 based on age (development studios) 49 50 Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Figure 60 : Financial situation at end of 2013 Financial situation at end of 2013 (development studios) (development studios) Figure 60: 52.4% 46.2% 40.3% 30.6% 30.8% 33.3% Moins de 5 ans 29.0% 23.1% Entre 5 et 10 ans 14.3% En déficit A l'équilibre Plus de 10 ans En excédent Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% With turnover growth at 15.9%, the development studios with a turnover less than 10M EUR surpassed 1 Source: Annual survey of the French Video Game Industry - SNJV/IDATE million EUR2015 in revenue. September 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Age of company and end of 2014 fiscal year Table 66: Average turnover (development studios) Age / 2014 fiscal year Deficit Balanced Surplus Overall total Under 5 33.9% 33.9% 32.3% 100.0% Between 5 and 10 46.2% 30.8% 23.1% 100.0% Over 10 33.3% 33.3% 33.3% 100.0% Number of respondents: 84 companies (development studios with a turnover of less than 10M EUR), response rate: 80.0% Overall total 36.7% 33.0% 30.3% 100.0% Figure 61: (excluding studios with a turnover exceeding 10M EUR) With turnover growth at 15.9%, the development studios Average with a turnover less than 10M EUR surpassed 1 million In 2013 (2014 barometer) €668,886 2014 estimate (2014 barometer) €920,725 EUR in revenue. Specify your turnover for the period Year In 2014: €884,466 €1,025,260 Table 66 : Average turnover (development studios) 2015 estimate Survey carried out between 4 May and 1 July 2015 (excluding studios with a turnover exceeding 10M EUR) Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Year Average Turnover growth (development studios) (in millions of EUR) (excluding studios with a turnover exceeding 10M EUR) In 2013 (2014 annual survey) Survey carried out between 4 May and 1 July 2015 Number of respondents: 109 companies (development studios), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - September 2015 0,92 2014 estimate (2014 annual survey) 0,67 €668,886 0,88 €920,725 In 2014: €884,466 2015 estimate €1,025,260 1,02 En 2013 out between Estimation En 2014 Estimation 2015 Survey carried 4 May2014 and 1 July 2015 Number of respondents: 84 companies (development studios with a turnover of Number respondents: 84 companies (development with a turnover of less than 10M EUR), response rate: 80.0% less ofthan 10M EUR), response rate:studios 80.0% Survey carried out between 4 May and 1 July 2015 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 3.1.3. Increasing capital 36 Annual Survey of the French Video Game Industry - 2015 With an average of 614,000 EUR in 2013 and 778,000 EUR in 2014, the capital of companies surveyed increased by 27%. Table 66: Average turnover (development studios) (excluding studios with a turnover exceeding 10M EUR) Specify your turnover for the period Year Average In 2013 (2014 barometer) 2014 estimate (2014 barometer) €668,886 €920,725 InSource: 2014: 2015 Annual survey of the French Video Game €884,466 Industry - SNJV/IDATE 2015 €1,025,260 September 2015 estimate Survey carried out between 4 May and 1 July 2015 Figure 61 : Turnover growth (development studios) (in millions of EUR) (excluding studios with a turnover exceeding Figure 61: Turnover growth (development studios) (in millions of EUR) Number of respondents: 84 companies (development studios with a turnover of less than 10M EUR), response rate: 80.0% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 10M EUR)(excluding studios with a turnover exceeding 10M EUR) 0,92 1,02 0,88 4. An export-orientated industry In 2014, 42% of the turnover of the studios surveyed was generated abroad. In 2015, this percentage is expected to grow to 44.3%, which reflects the importance of international markets in the video game industry. Table 69 : Share of exports (development studios) 0,67 What share of your turnover do exports account for? En2013 2013 In Estimation 2014 2014 estimate 2014 InEn 2014 Estimation 2015 2015 estimate Survey carried out between 4 May and 1 July 2015 Year Average In 2013: 41.1% Survey carried out between 4 May and 1 July 2015 In 2014: 42.0% Source: 2015 Barometer of the French Video Industry - SNJV/IDATE - September 2015 Number of respondents: 84 Game companies (development studios with a turnover of less than 10M EUR), response rate: 80.0% 2015 estimate 44.3% Increasing capital Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE With an average2015 of 614,000 EUR in 2013 and 778,000 EUR in 2014, the capital of companies surveyed Survey carried out between 4 May and 1 July 2015 September increased by 27%. Number of respondents: 67 companies (development studios that responded ‘Yes’ to question 21 on self-publishing) 3.Increasing capital Response rate: 81.7% With an average of 614,000 EUR in 2013 and 778,000 EUR Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE www.idate.org © SNJV/IDATE 2015 51 September 2015 Number of respondents: 84 companies (development studios with a turnover of less than 10M EUR), response rate: 80.0% 3.1.3. in 2014, the capital of companies surveyed increased by 27%. Table 67 : Capital based on age (all companies) Year 2013 2014 Under 5 €239,341 €455,705 Between 5 and 10 €365,796 €370,180 Over 10 €2,033,886 €2,236,240 Overall average €613,867 €778,462 Survey carried out between 4 May and 1 July 2015 Number of respondents: 94 companies (all activities), response rate: 64.4% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 If we only take into account results related to video game production (removing the share of turnover linked to service provision), the average turnover generated from exports is 328,000 EUR per company in 2015. The proportion of the budget devoted to international development amounted to 19.7% among development studios, an increase of 3.5 points from the previous year. This represents an average investment of just over 200,000 EUR per studio and which generates nearly 330,000 EUR. It is thus profitable and encourages companies to continue or begin investing. Table 70 : Proportion of budget devoted to international development (all companies) How much of your budget goes towards international development? As for the development studios, the same increase can be seen. The most striking increase was observed in studios under 5 years old (+87%). As is often the case, this growth will essentially result in accumulation of profits. This situation demonstrates the ability of companies to create profit from their productions and allows them to invest in future projects. Survey carried out between 4 May and 1 July 2015 Number of respondents: 144 companies (all activities), response rate: 98.6% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Table 68 : Capital based on age (development studios) Table 71 : Proportion of budget devoted to international development (development studios) Year 2013 2014 Under 5 €301,642 €563,116 Between 5 and 10 €167,661 €156,063 Over 10 €2,554,682 €2,807,780 Overall average €717,598 €914,776 In 2014: 15.5% 2015 estimate 18.5% How much of your budget goes towards international development? Survey carried out between 4 May and 1 July 2015 Number of respondents: 72 companies (development studios), response rate: 67.9% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 En 2014 16.2% Estimation 2015 19.7% Survey carried out between 4 May and 1 July 2015 Number of respondents: 108 companies (development studios), response rate: 99.1% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 37 3.2. The critical question of financing business development Table 73 : Access conditions for receiving bank credit How would you describe your access conditions for receiving bank credit? 1. Access to financing business development difficult Access conditions 2015 2014 22.1% of the video game companies use bank credit to finance their activities. I can access it very easily 4.8% 2.7% I can access it easily 13.7% 21.8% It is difficult to access 17.1% 21.8% It is very difficult to access 9.6% 12.7% We were refused bank credit 5.5% 4.5% We've never needed bank credit 49.3% 36.4% Total 100.0% 100.0% This low figure highlights the significant disengagement of banks with regard to companies in this sector, which raises the question of how much confidence there is in the industry. In addition, 26.7% the companies surveyed claim it is difficult or very difficult to obtain bank credit, and 5.5% have been denied bank credit. Ultimately, nearly 50% of those surveyed have never resorted to bank credit. Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 2. But clear need for external funding to fuel growth This lack of support from banking institutions has meant nearly three-quarters of the companies surveyed have The priority financing needs are long-term (48.4%) and to use their own capital and more than half (58.6%) use term (38.1%). priority distinction between Annual Barometermedium of the French Video Game Industry, 2nd The Edition, 2015 operating revenue. these two needs has obviously narrowed with the percentage gap dropping from 35 points in 2014 to only 10 In general, access to external funding resources How seems would you describe your access conditions for receiving bank credit? Access conditions 2015 2014 laborious. Many studio directors believe this situation points in 2015. I can access it The very easily 4.8% 2.7% need for long-term financing is not as strongly felt (-12 harms the attractiveness of France for this industry. I can access it easily points) while more focus is being placed 13.7% on medium term21.8% It is difficult to access 17.1% 21.8% needs (+12 points). It is very difficult to access 9.6% 12.7% We were refused bank credit 5.5% 4.5% Table 72 : Sources of funding of companies surveyed We've never needed bank credit 49.3% TOTAL 100.0% Table 74 : Financing needs of companies surveyed What sources of funding does your company use? 36.4% 100.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% How would you describe your financing needs? Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Type of funding 2015 2014 Equity 71.7% 3.2.2. for external funding to fuelby growth 78.7%But clear needShort term view, financed operating Operating revenue 58.6% National aid 35.2% Financing needs 2015 2014 13.2% 14.1% 48.8% 60.6% 100.0% 100.0% Regional aid 22.8% The priority financing needs are long-term revenue(48.4%) and medium term (38.1%). The priority distinction these two needs has obviously narrowed with the percentage gap dropping from 35 points in points in 2015. view, financed by current 40.5%2014 to only 10 Medium-term 38.0% 25.3% The need for long-term financing is assets not as strongly felt (-12 points) while more focus is being placed on 23.4%medium term needs (+12 points). Bank loans 22.1% 36.9% 60.4%between Table 74: Long-term view, financed by fixed assets Financing needs of companies surveyed Investment capital 14.5% 30.6% European aid 7.6% 7.2% How would you describe your financing needs? Financing needs Other* 1.4% 2.7% Crédit d'impôt recherche (CIR) 0.0% 2.7% Short term view, financed by operating revenue 13.2% Number of respondents: 129 companies (all activities), response rate: 88.3% 14.1% Medium-term view, financed by current assets 38.0% 25.3% Total 2015 2014 Survey carried out between 4 May and 1 July 2015 Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - Long-term view, financed by fixed assets September 2015 TOTAL 48.8% 60.6% 100.0% 100.0% * leasing, subsidiary of foreign company Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 129 companies (all activities), response rate: 88.3% Number of respondents: 145 companies (all activities), response rate: 99.31% Source: 2015 Barometer of the62 French Video Game Industry of - SNJV/IDATE - September 2015 Figure : Breakdown companies based Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE financing Figure 62: Breakdown ofneeds companies based on their financing needs September 2015 13% 49% 38% on their Court terme à exploitation Court terme à exploitation Moyen terme Moyen terme à bas de bilan à bas de bilan Long terme à haut de bilan Long terme à haut de bilan out1between Survey carried outSurvey betweencarried 4 May and July 2015 4 May and 1 July 2015 Number respondents: 129 companies (all88.3% activities), response rate: 88.3% Number of respondents: 129of companies (all activities), response rate: Source:of 2015 Annual of the -French Video Game Industry Source: 2015 Barometer the French Videosurvey Game Industry SNJV/IDATE - September 2015 - SNJV/IDATE - September 2015 38 Annual Survey of the French Video Game Industry - 2015 www.idate.org © SNJV/IDATE 2015 54 Table 79: Capital raised in 2015 3. Raising capital as a financing option, low uptake, but highly anticipated Do you expect to raise capital by 2016? In 2012, 9.2% of companies had raised capital (2014 annual survey). This percentage was 7.8% in 2013 and 11.9% in 2014. Opinion % Table 75 : Capital raised in 2013 Very likely 12.9% Likely 55.3% Unlikely 29.4% Very unlikely 2.3% Total 100.0% Did you raise capital in 2013? Capital raised % No 92.2% Yes 7.8% Total 100.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 141 companies (all activities), response rate: 96.6% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Table 76 : Capital raised in 2014 Survey carried out between 4 May and 1 July 2015 Number of respondents: 89 companies (all activities and those that did not choose ‘You do not want to raise capital’ in table below), response rate: 84.8% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 43.6% of the companies surveyed would use it to finance their activities, while 30.1% would use it to access new Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 markets. Did you raise capital in 2014? Capital raised % No 88.1% Do you expect to raise capital by 2016? Yes 11.9% Total 100.0% Very unlikely TOTAL Table 80 : Uses for raising capital Unlikely Reason for raising capital % Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 143 companies (all activities), response rate: 97.9% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 The amount raised by the sector’s companies in 2014 is still moderate but growing: 320,000 EUR on average in 2013 and 530,000 EUR in 2014. 29.4% 2.3% What do you currently want to raise capital for? 100.0% Number of respondents: 89 companies (all activities and those that did not choose 'You do not want to raise capital' in table below), response rate: 84.8% Supporting current 43.6% Source: 2015 Barometer ofyour the French Video Gameactivity Industry - SNJV/IDATE - September 2015 43.6% the not companies would use it to finance their activities, while 30.1% would use it to Youof do wantsurveyed to raise capital 39.8% access new markets. Accessing new markets Uses for raising capital 30.1% Developing a new activity 27.2% Acquiring new technologies 12.6% Table 80: What do you currently want to raise capital for? Reason for raising capital Supporting your current activity You do not want to raise capital % 43.6% 39.8% Accessing new markets 30.1% Survey carried out between 4 May and 1 July 2015 27.2% 130 companies (all activities), response rate: 89% 12.6% Source: 2015 Annual survey of the French Video Game Industry SNJV/IDATE Survey carried out between 4 May and 1 July 2015 Number of respondents: 130 companies (all activities), response rate: 89% September 2015 Developing a new activity Number of respondents: Acquiring new technologies Table 77 : Amount of capital raised on average in 2013 Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 FigureUses 63for: raising Uses for raising capital capital Figure 63: Specify the amount of capital (in EUR) you raised in 2013: Amount of capital raised Acquérir de nouvelles technologies €320,000 12.6% Développer une nouvelle activité Survey carried out between 4 May and 1 July 2015 Number of respondents: 7 companies (all activities) who raised capital in 2013 Response rate: 63.6% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Table 78 : Amount of capital raised on average in 2014 27.2% Accéder à de nouveaux marchés Vous ne souhaitez pas lever de fonds Soutenir votre activité actuelle 30.1% 39.8% 43.6% Survey carried out between 4 May and 1 July 2015 Number of respondents: 130 companies (all activities), response rate: 89% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 130 companies (all activities), response rate: 89% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Specify the amount of capital (in EUR) you raised in 2014: Amount of capital raised €530,231 Survey carried out between 4 May and 1 July 2015 Number of respondents: 13 companies (all activities) who raised capital in 2014 Response rate: 76.5% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 61% of the companies surveyed for the 2014 annual survey expected to raise capital in 2014. By mid-2015 only 12.1% had actually done this. This optimism is also on show in 2015 as 68.2% of the companies surveyed think they will raise capital by the end of the year. www.idate.org © SNJV/IDATE 2015 39 56 4.Outlook: reasons to be optimistic 4.1. Entrepreneurs find increased optimism within a context of short-term financial visibility Figure 65 : Confidence levels of those surveyed aboutConfidence the future of their company in 2014 and 2015 Figure 65: levels of those surveyed about the future of their company in 2014 and 2015 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 70.1% 67.1% 1. Proven optimism 2014 Like in 2014, the video game companies surveyed remain very optimistic overall about the future of their company, despite the difficult market environment: 83.6% claim to have confidence in the future of their company. 14.5%16.4% ual Barometer of the French Video Game Industry, 2nd Edition, 2015 2015 13.6% 13.7% 1.8% 2.7% Très confiant Plutôt confiant Peu confiant Pas confiant du tout Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE companies also have renewed2nd confidence the future of the sector in France. This optimism has surveyed about of theTheSeptember Annual Barometer French Video2015 Game Industry, Edition, in 2015 81 : Confidence of those Outlook:Table reasons to belevels optimistic Survey carried out between 4 May and 1 July 2015 grown significantly: 65% of the companies surveyed have confidence in the future of the sector, compared with 45.5% in 2014. the future of their company Table 82: companies Opinions on the future of the French videorenewed game sector (all companies) The also have confidence in the Figure Confidence levels of those surveyed about the future of their company in 2014 and 2015 Areincreased you confident about the future company? ntrepreneurs find optimism withinof ayour context of 65: short-term How optimistic are you about the future of the French video game sector? future of the sector in France. This optimism has grown Opinion 2015 2014 nancial visibility Opinion 2015 2014 Very optimistic 70.1% 65% 2.7% 1.0% have significantly: of the companies surveyed 67.1% Somewhat optimistic 62.3% 44.5% Very confident 16.4% 14.5% confidence compared with Somewhat pessimisticin the future of the sector, 32.9% 44.5%45.5% oven optimism Very pessimistic 2.1% 10.0% in 2014.. Somewhat confident 67.1% 70.1% TOTAL 100.0% 100.0% e in 2014, the video game companies surveyed remain very optimistic overall about the future of their Survey carried out between 4 May and 1 July 2015 mpany, despite the difficultNot market environment: 83.6% claim13.7% to have confidence13.6% in the future of their Number of respondents: 146 companies (all activities), response rate: 100% confident mpany. Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 ble 81: Not confident at all 14.5%16.4%Table 2.7% 1.8% 100.0% 100.0% Confidence levels of those surveyed about the future of their company Total e you confident about the future of your company? inion 2015 2014 Très 82 : Opinions on 13.6% the future 13.7% of the French video game sector (all companies) 1.8% 2.7% Figure 66: 2.1% confiant 2015 2.7% TAL 2.7% HowPlutôt optimistic are you about the future ofPas theconfiant Frenchdu video confiant Peu confiant tout Très optimiste game sector? 32.9% Plutôt optimiste 2014 Source: 2015 1.8%Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 100.0% Very optimistic 100.0% 2015 Opinions on the future of the French video game sector (all companies) Survey carried out between 4 May and 1 July 2015 y confident 16.4% 14.5% Survey Number of respondents: 146 companies (all activities), response rate:carried 100%out between 4 May and 1 July 2015 mewhat confident 67.1% 70.1% Opinion Number of respondents: 146 companies (all activities), response rate: 100% 2015 Source: 2015 Annual survey of the French13.7% Video Game Industry - SNJV/IDATE t confident 13.6% - September t confident at all 2014 2.7% 62.3% Plutôt pessimiste Très pessimiste 1.0% The companies also Somewhat have renewed confidence in the future62.3% of the sector in France. optimistic 44.5% This optimism has grown significantly: 65% of the companies surveyed have confidence in the future of the sector, mber of respondents: 146 companies (all activities), response rate: 100% Surveyin carried out between 4 May and 1 July 2015 compared with 45.5% 2014. Figure 64 : Confidence levels of those surveyed Somewhat pessimistic 32.9% 44.5% rce: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 vey carried out between 4 May and 1 July 2015 ure 64: about the future of their company Confidence levels of those surveyed about the future of their company Table 82: 13.7% 2.7% 16.4% Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 OpinionsVery on the future of the French video game sector pessimistic 2.1% (all companies) 10.0% How optimistic are you about the future of the French video game sector? Total 100.0% 100.0% Opinion 2015 2014 Very confident Très confiant Very optimistic 2.7% 1.0% Somewhat Survey carried out between 4 May and 1 July 2015 Somewhat optimistic 62.3% 44.5% Number of respondents: 146 companies (all activities), response rate: 100% Plutôt confiant confident Somewhat pessimistic 32.9% 44.5% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Not confident Very pessimistic 2.1% 10.0% - September 2015 Peu confiant TOTAL 100.0% 100.0% Not confident at Survey carried out between 4 May and 1 July 2015 all Pas confiant du tout www.idate.org © SNJV/IDATE 2015 67.1% vey carried out between 4 May and 1out Julybetween 2015 Survey carried 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Figure 66 : Opinions on the future of the French video game sector (all companies) Opinions on the future of the French video game sector (all companies) Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 mber of respondents: 146 companies (all activities), response rate: 100% Number of respondents: 146 companies (all activities), response rate: 100% Figure 66: rce: 2015 Barometer of the French Video Game Industry SNJV/IDATE September 2015 Source: 2015 Annual survey of -the French -Video Game Industry - SNJV/IDATE - 2.1% September 2015 w.idate.org © SNJV/IDATE 2015 58 2.7% Very optimistic SomewhatTrès optimiste optimistic Plutôt optimiste Somewhat Plutôt pessimiste pessimistic Très pessimiste Very pessimistic 32.9% 62.3% Survey carried out between 4 May and 1 July 2015 Survey carried out between 4 May of andrespondents: 1 July 2015 146 companies (all activities), response rate: 100% Number 57 companies (all activities), response rate: 100% Number of respondents: Source: 146 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - Source: 2015 BarometerSeptember of the French2015 Video Game Industry - SNJV/IDATE - September 2015 40 Annual Survey of the French Video Game Industry - 2015 www.idate.org © SNJV/IDATE 2015 58 Figure 67 : Opinions on the future of the French Table 84 : Turnover in the next 12 months video game sector in 2014 and 2015 (all companies) How do Game you think turnover Annual Barometer of the French Video Industry,your 2nd Edition, 2015 will change in the next 12 Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 Figure 67: Opinions on the future of the French video game sector in 2014 and 2015 (all companies) months? 62.3% 44.5% Turnover situation 44.5% 32.9% 10.0% 1.0% 2.7% Très optimiste Plutôt optimiste Plutôt pessimiste It will remain stable 2.1% Table 84: 26.6% Turnover in the next 12 months It will decrease Très pessimiste 11.2% How do you think your turnover will change in the next 12 months? Survey carried out between and 1 July 2015 Survey carried out4 May between 4 May and 1 July 2015 Turnover situation Number of respondents: 146 companies (all activities), response rate: 100% Number of respondents: 146Game companies (all2015 activities), response rate: 100% Annual Barometer of the2015 French Video Industry, 2nd -Edition, Source: Barometer of the Game French Video Industry SNJV/IDATE - September 2015 It will grow Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE This optimism is accompanied by a positive view of each company's situation in their market. 60% ofstable It will remain September 2015 them believe their situation will improve and 30.1% believe it will remain stable. Figure 67: % 2014 And as expected, 62.2% believe their turnover will grow over this same period 62.2% and 26.7% believe it will It will grow remain stable. 2015 Total 100.0% % 62.2% Survey carried out between 4 May and 1 July 2015 26.6% Number of respondents: 146 companies (all activities), response rate: 100% It will decrease 11.2% Opinions the future ofinthe French video game sector in 2014 and 2015 (all companies) Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Table 83: on Company situations the next 12 months TOTAL 100.0% How do you think the situation company will change inby the next months? - September 2015 This optimism isof your accompanied a 12positive viewcarried of each Survey out between 4 May and 1 July 2015 62.3% Company situation % company’s situation in their market. 60% of19.6% them believe It will significantly improve Number of respondents: 146 companies (all activities), response rate: 100% It will slightly improve 39.9% Source: Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 44.5% their situation will improve and44.5% 30.1% believe30.1% it will2015 remain It will remain stable Figure 69 : How do you think your turnover will It will slightly deteriorate 7.0% stable. 32.9% It will significantly deteriorate 3.5% change inturnover the next 12 months? Figure 69: How do you think will change in the next 12 months? 2014your TOTAL 100.0% 2015 Survey carried out between 4 May and 1 July 2015 Table 83 : Company situations in the next 1210.0% months 2.7% Number of respondents: 146 companies (all activities), response rate: 100% 1.0% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 11.2% 2.1% do you think the the situation of your company will change in the nextwill 12 months? How doHow you think situation of your company change in Figure 68: 3.5% the next 12 months? Très optimiste Plutôt 7.0%optimiste Survey carried out Company between 4 May and 1 July 2015 situation 19.6% Plutôt pessimiste Très pessimiste 26.6% % Nettement s'améliorer Number of respondents: 146 companies (all activities), response rate: 100% 62.2% Légèrement s'améliorer It willof significantly improve 19.6% Source: 2015 Barometer the French Video Game Industry - SNJV/IDATE - September 2015 Se maintenir 30.1% It will slightly improve It will grow Croître It will remain stable Se maintenir Décroître It will decrease 39.9% Légèrement se détériorer This optimism is accompanied by a positive view of each company's situation in their market. 60% of Nettement se détériorer 39.9% them believe their situation will stable improve and 30.1% believe it will remain 30.1% stable. It will remain Survey carried out between 4 May and 1 July 2015 It will slightly 7.0% Table 83: Company situationsdeteriorate in the next 12 months Survey carried out betweenNumber 4 May and July 2015 of1respondents: 146 companies (all activities), response rate: 100% Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (allAnnual activities), response rate:French 100% Video Game Industry - SNJV/IDATE Number of respondents: 146 of companies activities), response 100% How do you think the situation your(all company willrate: change in the next 12 3.5% months? Source: 2015 survey of the It will significantly deteriorate Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Source: 2015 Barometer ofSeptember the French Video 2015Game Industry - SNJV/IDATE - September 2015 Company situation % Total It will significantly improve 100.0% It will slightly improve Survey carried out between 4 May and 1 July 2015 19.6% 4.1.2. Financial visibility 39.9% 2. Financial visibility It will remain stable 30.1% Number of respondents: 146 companies (all activities), response rate:this 100% Despite increased optimism, companies are continuing to develop withoutare anycontinuing real long-term view, Despite this increased optimism, companies It will slightly deteriorate 7.0% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE since financial visibility is short term (between 1 and 6 months) for 41.8% of them. This situation is similar to develop without any real long-term view, since financial 3.5% 59 - September 2015 to 2014, although there are more companies this year with 7 to 9 month visibility (+9.4 points). It will significantly deteriorate www.idate.org © SNJV/IDATE 2015 visibility is short term (between 1 and 6 months) for 41.8% of them. This situation is similar to 2014, although there Number of respondents: 146 companies (all activities), response rate: 100% Table 85: Financial visibility are more companies this year with 7 to 9 month visibility Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 68 : How do you think the situation of your In your opinion, what kind of financial visibility does your company have? (+9.4 points). company will change in the next 12 months? Visibility 2015 2014 TOTAL 100.0% Survey carried out between 4 May and 1 July 2015 Figure 68: How do you think the situation of your company will change in the next 12 months? 1 to 3 months 7.0% 3.5% 19.6% 30.1% 39.9% 4 to 6 months significantly 7 to 9 months 13.6% 21.2% 30.0% 11.8% In your opinion, what kind of financial visibility does your improve 10 toNettement 15 monthss'améliorer 21.9% 25.5% company have? slightly 16 to improve 18 months 15.1% 19.1% Légèrement s'améliorer TOTAL 100.0% remain stable Visibility 2015 2014100.0% Survey out between 4 May and 1 July 2015 Secarried maintenir slightly to 3 months 13.6% Number of respondents: 1461companies (all activities), response rate: 100% 19.9% Légèrement se détériorer deteriorate Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 4 to 6 months 21.9% 30.0% significantly Nettement se détériorer 7 to 9 months 21.2% 11.8% deteriorate Survey carried out between 4 May and 1 July 2015 Survey carried out betweenof 4 May and 1 July 2015 Number respondents: 146 companies (all activities), response rate: 100% Number of respondents: companies activities), response rate: 100%Game Source:146 2015 Annual(allsurvey of the French Video 19.9% 21.9% Table 85 : Financial visibility 10 to 15 months 21.9% 25.5% 16 to 18 months 15.1% 19.1% Total 100.0% 100.0% www.idate.org © SNJV/IDATE 2015 Industry - SNJV/IDATE - Source: 2015 Barometer of the2015 French Video Game Industry - SNJV/IDATE - September 2015 September Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - September 2015 And as expected, 62.2% believe their turnover will grow over this same period and 26.7% believe it will remain stable. www.idate.org © SNJV/IDATE 2015 59 41 60 al Barometer of the French Video Game Industry, 2nd Edition, 2015 Figure 70 : Financial visibility in 2015 (all companies) e 70: Financial visibility in 2015 (all companies) 15.1% 19.9% 21.9% De 1 à 3 mois 1 to 3 months De 4 à 6 mois 1. The attractiveness of France 4 to 6 months De 7 à 9 mois 7 to 9 months 50% of the companies surveyed now consider France to 10 to 15 months De 10 à 15 moisbe an attractive country for the video game industry. This 16 to 18 months De 16 à 18 moispercentage was 38.2% in 2014. 21.9% 21.2% y carried out between 4 May and 1 July 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September Financial visibility2015 in 2014 and 2015 (all companies) er of respondents: 146 companies (all activities), response rate: 100% e: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 e 71: 4.2. France becoming more attractive in a competitive and globalised market According to these companies, this attractiveness is down to a highly qualified and productive workforce, the ecosystem, significant financial aid, working conditions and access to very good training. On the other hand, the companies that think France is Figure 71 : Financial visibility in 2014 and 2015 (all not attractive cite the following reasons: financial aid too 25.5% selective, difficulty in bringing skills in from abroad, high 21.9% 21.2% 21.9% companies) Figure 70: Financial visibility in 2015 (all companies) 19.9% 19.1% social security charges, reticence from politicians and 2014 15.1% 13.6% 15.1% 19.9% 11.8% financial institutions which contributes to mistrust of the De 1 à 3 mois 2015 video games sector. De 4 à 6 mois 30.0% Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 21.9% De 1 à 3 mois De 7 à 9 mois 21.9% De 4 à 6 mois De 7 à 9 mois y carried out between 4 May and 1 July 2015 Table 86 : The attractiveness of France for the video game sector De 10 à 15 mois De 10 à 15 mois De 16 à 18 mois De 16 à 18 mois Would you say France is an attractive country for companies in the video game sector? 21.2% er of respondents: 146 companies (all activities), response rate: 100% Survey carried outGame between 4 May and 1 July 2015 2015 e: 2015 Barometer of the French Video Industry - SNJV/IDATE - September Number of respondents: 146 companies (all activities), response rate: 100% Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE Opinion Financial visibility in 2014 and 2015 (all companies) becoming Septembermore 2015 attractive in a competitive and globalised Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 nce rket 2015 2014 Yes 50.0% 38.2% No 50.0% 61.8% Total 100.0% 100.0% Figure 71: 30.0% 19.9% attractiveness of France 21.9% 13.6% 21.2% 25.5% 11.8% 21.9% 19.1% 15.1% 2014 2015 of the companies surveyed now consider France to be an attractive country for the video game stry. This percentage was 38.2% in 2014. Survey carried out between 4 May and 1 July 2015 rding to these companies, this attractiveness is down to a highly qualified and productive workforce, De 1 à 3 mois De 4 à 6 mois De 7 à 9 mois De 10 à 15 mois De 16 à 18 mois Number of respondents: 142 companies (all activities), response rate: 97.9% cosystem, significant financial aid, working conditions and access to very good training. Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - September 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 146 companies (all activities), response rate: 100% Source: 2015companies Barometer of the French Game Industry - SNJV/IDATE - September 2015 he other hand, the thatVideo think France is not attractive cite the following reasons: financial oo selective, difficulty in bringing skills in from abroad, high social security charges, reticence from Franceinstitutions becoming more attractive in a competitive and globalised cians 4.2. and financial which contributes to mistrust of the video games sector. market 4.2.1. The attractiveness of France 50% of the companies surveyed now consider France to be an attractive country for the video game industry. This percentage was 38.2% in 2014. According to these companies, this attractiveness is down to a highly qualified and productive workforce, the ecosystem, significant financial aid, working conditions and access to very good training. On the other hand, the companies that think France is not attractive cite the following reasons: financial aid too selective, difficulty in bringing skills in from abroad, high social security charges, reticence from politicians and financial institutions which contributes to mistrust of the video games sector. ate.org © SNJV/IDATE 2015 www.idate.org © SNJV/IDATE 2015 61 61 42 Annual Survey of the French Video Game Industry - 2015 the French Video Game Industry, 2nd Edition, 2015 attractiveness of France for the video game sector ance is an attractive country for companies in the video game sector? 2015 50.0% 2014 38.2% 50.0% 61.8% 100.0% 100.0% tween 4 May and 1 July 2015 nts: 142 companies (all activities), response rate: 97.9% eter of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 72 : The attractiveness of France for the video Table 87 : Ranking of the most attractive countries/ regions (open question with ranking) Annual Barometer of the French Video Game Industry, 2nd Edition, 2015 attractiveness of France for thein video game sector in 2015 game sector 2015 Table 86: The attractiveness of France for the video game sector Would you say France is an attractive country for companies in the video game sector? Opinion Yes No 2015 50.0% 2014 38.2% YES61.8% 100.0% Oui NO Non 50.0% 50.0% 50.0% 100.0% TOTAL Survey carried out between 4 May and 1 July 2015 Number of respondents: 142 companies (all activities), response rate: 97.9% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 72: The attractiveness of France for the video game sector in 2015 Survey carried out between 4 May and 1 July 2015 Number of respondents: 142 companies (all activities), response rate: 97.3% nts: 142 companies (all activities), response rate: 97.3% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE eter of the French Video Game Industry - SNJV/IDATE - September 2015 50.0% 50.0% September 2015 Oui Non tween 4 May and 1 July 2015 attractiveness of France for the video game sector in 2014 and 2015 61.8% Figure 73 : The attractiveness of France for the video 50% game sector in 2014 and 2015 50% Number of respondents: 142 companies (all activities), response rate: 97.3% Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Figure 73: The attractiveness of France for the video game sector in 2014 and 2015 50% 38.2% Oui tween 4 May and 1 July 2015 61.8% 50% Oui nts: 142 companies (all activities), response rate: 97.3% % ranking it Canada 66.4% 80.5% United States 9.7% 50.4% United Kingdom 1.68% 31.0% Survey carried out between 4 May and 1 July 2015 Number of respondents: 125 companies (all activities), response rate: 85.6% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE September 2015 2014 Table 88 : The most attractive countries/regions 2015 In which countries/regions would you like to grow or have already grown your business? 2014 Non % ranking it as number 1 The reform to the Crédit d’Impôt Jeu Vidéo puts France as number 1 of the most attractive countries in Europe. Survey carried out between 4 May and 1 July 2015 8.2% Country 2015 Non Survey out between 4 May and 1 July 2015 eter of the French Video carried Game Industry - SNJV/IDATE - September 2015 Number of respondents: 142 companies (all activities), response rate: 97.3% Survey carried out between 4 May and 1 July 2015 Country % ranking it United States 80.0% Number of respondents: 142 companies (all activities), response rate: 97.3% 2015 Annual survey of French Video Game Industry - SNJV/IDATE ch countries Source: seem the most attractive, anthe overwhelming majority of those surveyed- rank Canada When asked which countries seem the most attractive, an overwhelming majority of those surveyed rank 2015 66.4%). OnlySeptember 9.7% of them rank the United States highest, although it was mentioned by Source: 2015 Barometer of the French Video Game Industry - SNJV/IDATE - September 2015 Canada highest (66.4%). Only 9.7% of them rank the United States highest, although it was mentioned by slightly more than half of those surveyed. Although the United Kingdom wasranked not ranked highest byby many, those surveyed. Although the United Kingdom was not highest many, it still takes the third spot with more than 30% deeming it attractive. n half of ird spot with more than 30% deeming it attractive. of the most attractive countries/regions (open question with ranking) When Ranking asked which countries seem the most attractive, Country % ranking it as number rank % ranking it an overwhelming majority of those surveyed Canada 1 highest (66.4%). Only 9.7% of them rank States Canada 66.4% the United80.5% % ranking it as number % ranking it United States 9.7% 50.4% highest, although it was mentioned by slightly more than 1 United Kingdom 1.68% 31.0% 66.4% 80.5% Survey carried between 4 May and 1 July 2015 half ofoutthose surveyed. Although the United Kingdom was Number of respondents: 125 companies (all activities), response rate: 85.6% 9.7% 50.4% not2015 ranked many, it still takes2015 the third spot with Source: Barometer ofhighest the French Videoby Game Industry - SNJV/IDATE - September 1.68% 31.0% more than 30% deeming it attractive. The reform to the Crédit d’Impôt Jeu Vidéo puts France as number 1 of the most attractive countries in Table 87: king of the most attractive countries/regions (open question with ranking) tween 4 May and 1 July 2015 Europe. nts: 125 companies (all activities), response rate: 85.6% eter of the French Video Game Industry - SNJV/IDATE - September 2015 www.idate.org © SNJV/IDATE 2015 62 France 57.6% England 52.0% Germany 40.8% Japan 33.6% Brazil 30.4% China 28.8% Russia 24.0% Ireland 21.6% South Korea 26.4% e Crédit d’Impôt Jeu Vidéo puts France as number 1 of the most attractive countries in Mexico DATE 2015 62 62.4% 17.6% Finland 17.6% India 16.8% Other 11.2% Morocco 10.4% Survey carried out between 4 May and 1 July 2015 Number of respondents: 125 companies (all activities), response rate: 85.6% Source: 2015 Annual survey of the French Video Game Industry - SNJV/IDATE - September 2015 43 5.Conclusion The video game market is maintaining long-term growth, while the following characteristics can also be observed: • Some of its segments are mutating, in line with technological developments and the expectations users have of these changes. • New segments are emerging to support these technological innovations, boosting entrepreneurship and creative innovation. • The industry structure, supported by giants of the sector, is being bolstered by an ‘indie’ trend which has been met with enthusiasm. • Value chains are shortening as intense dematerialisation of production and distribution removes links downstream. • • There has never been a better time for the sector’s artists and technicians to express themselves, as development tools emerge, proliferate and become more powerful. • Disintermediation of the value chain gives developers the opportunity to speak directly to their customers in segments where the barriers to entry appear to be low, like casual and mobile games. Consequently the number of micro-companies is increasing along with competitive risks, like those related to visibility. • All platforms are impacted by dematerialisation of the industry, which involves rethinking production chains, online gaming exploitation and distribution channels. • The mobile games segment on smartphones and tablets continues to grow. Many observers predict that this segment will become the largest gaming market in value in the medium term, judging by its success in emerging countries and Asia. • The 8th generation of home consoles has embraced dematerialised distribution of AAA games, and continues to deploy advanced community features and provide access to content and services out-of-game. • UHD televisions are now on the market (670,000 UHD TVs could be sold in France in 2015, according to IDATE) and provide users with a more spectacular image, but cloud gaming or games-on-demand on connected TVs has not yet taken off, despite strong expectations. The launch of new boxes like Apple TV could change this situation. • Smart toys have proven to be a new market segment straddling the video game and toy markets (the Skylanders franchise has generated 3 billion USD as of late 2014 and more than 240 million figurines have been sold). • Virtual, augmented and mixed reality is the technological trend this year. 2016 will be a defining year to see if the media hype is warranted in terms of content and profitability. The sector’s companies are becoming increasingly professional and mature in a business sense. Video game companies’ business activities are constantly evolving on an economic, industrial and technological level. • • Dematerialisation has penetrated all areas of game production, from how they operate to how they are distributed. As a result, the value chains of video game market segments have shortened and control has shifted to those who want to go independent. Similarly, developers are getting a better grasp of ‘the cloud ‘. Games now readily use ‘Software as a Service’ (SaaS) and ‘Platform as a service’ (PaaS) solutions. 44 Annual Survey of the French Video Game Industry - 2015 The annual annual survey is how we take the pulse of the industry, its economy, and the issues and microeconomics its companies are dealing with. The following are the 10 key takeaways from the 2015 annual survey. 1. France is a country of creation, nearly three-quarters of the companies in the sector are developers, compared with nearly 60% in Europe (source: IDATE). 2. France has 650 projects under development including 530 new intellectual properties, just over 80% of projects being produced. 500 projects will be released on the market in 2015. 3. Production is increasingly focused on international markets: 44.3% of turnover is generated from exports in 2015, compared with 42% in 2014. Investment in developing exports accounted for 16.2% of companies’ turnover in 2014 and 19.7% in 2015. 4. However, development studios are only allocating 11.8% of their production budget to promoting their titles. This varies according to the type of game, the platforms targeted and the marketing culture of the studio. Although the ratio of promotion budget to production budget can be 1:5 for AAA games, it should be at least 1:1 for games needing less investment. 5. The average production budget has risen from 1.2 million EUR in 2014 to 1.4 million EUR. But the number of games under development is down almost 10% over the same period. 6. The game development business sector is dominated by young companies: more than 57% of them are under 5 years old. And one out of every two companies under 5 is a micro-company (fewer than 5 full-time equivalent employees). 7. However, the number of full-time equivalent jobs per company has increased from 2014 to 2015, from 11.6 to 12.7. 8. The majority of the companies surveyed are taking an independent approach to their business. Nearly 94% of them claim to be ‘indie’ and three-quarters of them publish their games themselves. There are no games produced in France sold exclusively on physical media. 9. Uncertainty over how successful a game will be and the resulting difficulties in financing business growth has prompted 60% of developers to turn to providing services, including some non-gaming related services. 10. The companies surveyed place France in the top three most attractive countries for developing video games, behind the United States and Canada. 45 6. About the SNJV Created in 2008, the SYNDICAT NATIONAL DU JEU VIDEO (SNJV) currently represents more than 200 companies, producers, publishers and industry professionals from the video game and multimedia entertainment sector, as well as organisations involved in developing France’s video game industry. The SNJV’s mission is to study, represent, promote and defend the rights as well as material and moral interests of its member companies, on both a collective and individual level. The SNJV represents the French video game industry, both in France and abroad, in dealings with public authorities, administrations, private and public companies and corporations, other professional unions, and all competent authorities in general. It analyses the impact of French policy on the economic and social interests of French video game companies. It also provides regular communication on all issues relating to the video game industry, including any relevant economic, technical and legal information. With this mandate, the union implements the means and services to help its members conduct their business activities in France. The SNJV works closely with the various video game production territories in France through involvement with regional associations and local economic development clusters. The SNJV is one of the founding members of the EGDF (European Games Developer Federation), which works on behalf of some 1,500 video game production companies based in Europe. Contacts: Julien Villedieu – [email protected] 0970 460 611 2, rue de la Roquette 75011 Paris 46 Annual Survey of the French Video Game Industry - 2015 7. About IDATE The Institut de l’Audiovisuel et des Télécommunications en Europe (www.idate.org) is a research and consulting body specialising in the telecommunications, media and Internet industry markets. • • • • • • The Institute has over 30 years’ experience in consulting and research. It conducts studies and provides consulting services to companies (major clients, SMEs and start-ups), local authorities, governments and international organisations. Its assignments include international industry and market watches, market studies, industry and strategy analysis, technical-economic feasibility studies, forecasting, and innovation and R&D analysis. Nearly 30 consultants make up IDATE’s multidisciplinary teams. For nearly 15 years, IDATE has been studying and working on behalf of the video games sector. Its clients include research laboratories, technical service providers, tools and middleware developers, video game developers, publishers, console manufacturers, distributors and retailers. Its Consumer Electronics & Digital Entertainment division has supported over 40 businesses, start-ups, SMEs, and major companies working or aspiring to work in the video game sector. IDATE maintains its close ties to the industry with the DigiWorld Summit, an event it has organised for the last 35 years • • • • The DigiWorld Summit is an international conference that takes place annually in Montpellier. This event welcomes close to 1,500 professionals from the telecom, Internet and media industries. The DigiWorld Summit consists of themed seminars, one of which has been dedicated to the video games sector for the last 13 years. Since the creation of Game Summit (www.gamesummit. pro), more than 400 industry professionals, half of which from overseas, have come to speak on market, industry and technological trends. DATE publishes a catalogue of studies focused on innovation and understanding the economic and industry developments at play in the telecom and media industries 47 8. Table of Contents INDUSTRY CONTEXT 8 METHODOLOGICAL NOTE (2015 ANNUAL SURVEY) 10 1. THE ECONOMIC STRUCTURE AND PRODUCTION OF VIDEO GAMES IN FRANCE 12 1.1. 1.1.1. 1.1.2. 1.1.3. 1.1.4. 1.2. 1.2.1. 1.2.2. 1.2.3. 1.2.4. 1.3. 1.3.1. 1.3.2. 1.3.3. 1.3.4. A network of young companies, driven by creation Companies located throughout the territory with 3 dominant regional hubs Sector structured around content creation... But providing services remains vital for many Sector composed primarily of small and young companies France, home to video entertainment production Development studios favouring independence and producing ‘indie’ games Publishers and distributors focusing on PC game catalogues Dematerialised production dominated by mobile devices New intellectual properties, ongoing creative energy Production models strongly impacted by dematerialisation Fully dematerialised production within a context of disintermediation in the value chain Business models: free-to-play still favoured Significant production budgets, but relatively low proportion reserved for marketing the games Mainly self-financed production, which illustrates the low attractiveness of development studios to financial institutions 12 12 12 13 15 15 15 16 17 21 22 22 22 23 2. EMPLOYMENT IN THE FRENCH VIDEO GAME INDUSTRY 28 2.1. 2.1.1. 2.1.2. 2.1.3. 2.2. 2.2.1. 2.2.2. 2.3. Great disparity in company size and number of jobs Average number of full-time equivalent jobs rose between 2014 and 2015 Number of full-time equivalent jobs among publishers, distributors Employment in development studios is growing in 2015 Long-term and skilled jobs A talent industry dominated by long-term and highly skilled jobs Nearly two-thirds of jobs are permanent, but temporary contracts are on the rise Encouraging future prospects for employment in 2016 28 28 29 29 31 31 31 32 48 26 Annual Survey of the French Video Game Industry - 2015 3. THE ECONOMIC AND FINANCIAL SITUATION OF FRENCH VIDEO GAME COMPANIES 34 3.1. 3.1.1. 3.1.2. 3.1.3. 3.1.4. 3.2. 3.2.1. 3.2.2. 3.2.3. Companies growing despite economic fragility Turnovers of companies surveyed continue to show strong growth in 2015 Turnovers of studios surveyed show strong growth in 2015 Increasing capital An export-orientated industry The critical question of financing business development Access to financing business development difficult But clear need for external funding to fuel growth Raising capital as a financing option, low uptake, but highly anticipated 34 34 34 37 37 38 38 38 39 4. OUTLOOK: REASONS TO BE OPTIMISTIC 40 4.1. 4.1.1. 4.1.2. 4.2. 4.2.1. Entrepreneurs find increased optimism within a context of short-term financial visibility Proven optimism Financial visibility France becoming more attractive in a competitive and globalised market The attractiveness of France 40 40 41 42 42 5.CONCLUSION 44 6. ABOUT THE SNJV 46 7. ABOUT IDATE 47 8. TABLE OF CONTENTS 48 49 Notes 50 Annual Survey of the French Video Game Industry - 2015 51 Notes 52 Annual Survey of the French Video Game Industry - 2015 14, rue Alexandre Parodi - 75010 Paris www.snjv.org – [email protected] - +33 (0)970 460 611
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